A book is a physical medium for recording data in the form of images or writing, usually written with many single pages secured together and enclosed by a standard cover. The most common technical term for the physical arrangement of a book is codex. The term may also be used to refer to a single volume that contains all texts of a particular subject, discipline or period, and usually contains a table of contents, page numbering and a copyright notice.
One of the most important uses of a book in institutional trading is as a reference tool. Traders refer to this as a reference volume or catalogue of trading information. It normally includes the trading history for a given period of time, along with data on volumes traded, market activity over the period, average daily volume, open interest data for that period, stock quotes for each day and other general information. A trader may use this information to identify trends in particular areas of trading or to examine how a particular investment portfolio is performing. Some institutional traders refer to the term book value more precisely as an economic value not a book price.
As a rule, any trader who wishes to buy or sell a particular security will initially buy a long position. A long position is simply a position held by a trader for a long period of time. A short position on the other hand is the opposite of a long position. A short position exists only for a short period of time.
It was considered unprofessional to suggest that all trades and exchanges had been executed at the same time. This was viewed as a breach of the professional code of the day. Thus, brokers developed a system where trades were placed in blocks, with each block containing a different number of pages. The order book was then divided into ten parts, each of which contained pages of random letters.
The practice of placing trades in blocks was adopted and eventually absorbed by futures, option, and currency markets. A similar system is used today in electronic trading. It has been estimated that more than ninety percent of electronic transactions are placed in the futures and options markets. One reason that trading in this manner has become so popular is the development of nonfiction books on the subject. Many of these nonfiction books have become best sellers and have been widely reviewed.
The sale of nonfiction books on the stock market has also increased. There are a large number of fiction and nonfiction books available on the market that cover virtually every market and industry you can imagine. When considering a fictional investment opportunity it is important to select books based on actual events instead of fictional inventions. By learning about the various book genres, you will be better able to choose the best investment opportunities.