What is proprietary trading in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: proprietary trading

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Line of business of a bank that mainly handles deals it initiates itself. Key performance indicators are price/rate gains and income. Examples are security deals in stocks or bonds.

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• Key Concepts: 
  Proprietary trading is a type of trading activity conducted by financial institutions, such as banks, where they use their own funds to buy and sell financial instruments in the market. This type of trading is done for the purpose of making a profit from the price movements of the instruments. The FS-BA-PM-AFP Accounting for Financial Products component of SAP provides a comprehensive set of tools to manage and track proprietary trading activities. 
  
  How to use it: 
  The FS-BA-PM-AFP Accounting for Financial Products component of SAP provides a range of features to help manage and track proprietary trading activities. These features include the ability to track and monitor trades, calculate profits and losses, and generate reports on trading activities. Additionally, the component provides tools to help manage risk and compliance with regulatory requirements. 
  
  Tips & Tricks: 
  When using the FS-BA-PM-AFP Accounting for Financial Products component of SAP, it is important to ensure that all trades are properly documented and tracked. Additionally, it is important to ensure that all regulatory requirements are met when conducting proprietary trading activities. 
  
  Related Information: 
  The FS-BA-PM-AFP Accounting for Financial Products component of SAP also provides tools to help manage other types of financial products, such as derivatives, structured products, and foreign exchange. Additionally, the component provides tools to help manage risk management activities, such as stress testing and portfolio optimization.