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Trading Account

Trading Account Meaning:
In investment terminology, the term Trading Account refers to funds and/or securities deposited with a financial institution or broker for the purpose of speculation. A Trading Account is usually overseen by an investment dealer, fund manager or personal trader.

Trading Account Example:
For example, a Trading Account is typically used by a dealer to speculate on movements in tradable assets with the expectation of having the account benefit from the transactions they make. Decisions regarding which assets to trade, how large a position to take in those assets and whether to be long or short are generally made by the investment dealer in charge of the account. Many people who operate a Trading Account use technical analysis as a basis upon which to make their trading decisions more objective since it eliminates much of the emotional involvement in making transaction decisions.