Web Trader MT5
A desk is a group of analysts or traders within a bank, brokerage, or financial institution responsible for a particular asset class or product. This name is derived from the actual trading floor, where different trading groups sat at different desks and dealt with various markets.
The physical desk is no longer as important as the organizational concept. A rates desk handles interest rate products, an FX desk handles currency trading, an equities desk handles stock-related activity, and so on.
Every desk has its own book of positions, risk limits, and profit/loss account. Desks can also be further differentiated within larger institutions; for example, an FX desk could include a spot desk, a forwards desk, and an options desk.
The desk organization also dictates who a client will speak with when calling a bank. One aspect of the complexity of large financial institutions is routing inquiries to the right desk.
Example: A corporate client contacts the bank to hedge against floating-rate (interest rate) risk and currency (revenue) risk on a foreign-currency loan. The call first reaches the rates desk for the swap, then is passed to the FX desk for the forward contract: two desks, two different conversations, and one client’s relationship.
