The definition of trading operations on the Forex market

A systematization of approaches was made by various authors to define trading operations on the Forex market. At the present stage of Forex market development there is a problem of ambiguity when interpreting this concept. The revised definition proposed differs in that it interprets the operation as a sequence of actions to execute transactions, and the transaction as an agreement. Besides, this definition considers the characteristic properties of the operation, allowing it to separate trading operations on the Forex market from operations on other financial markets. In today's economic literature, as well as in foreign and Russian legislation, there is no accurate definition of trading operations on the Forex currency market. The article investigates the approaches of various authors to define this concept. These authors include B.A. Rayzberg, M.K. Bunkina and V.A. Semenov, A.I. Shmyreva, L.N. Krasavina, and other researchers, as well as the interpretation of the nature of trading operations at the legislative level. The approaches examined do not draw a difference between the concepts of "operation" and "transaction", defining all operations as purchase or sale transactions of financial instruments, and do not consider other important attributes. The legislation of the Russian Federation recognises a transaction as a contract, and the contract as a financial instrument. Forex terminology defines a trading operation as a transaction - that is to say, the "fulfilment of a contract for the purchase or sale of financial instruments", and as "execution or non-execution in the specified order of all the 'included' actions, which are not considered separately". In our opinion, a trading operation is a sequence of actions to execute a purchase and sale transaction in financial instruments. The word "sequence" assumes the ordering and continuity of actions in time, leading to an exchange of monetary funds by the seller and the buyer, the result of which is either "fulfilled" or "unfulfilled". The work describes the sequence of actions when executing transactions, investigates various types of operations, clarifies the differential characteristics of the concept of "trading operation", and differentiates between the concepts of commercial and noncommercial operations (transactions). The author presents a general plan for managing trading operations and proposes the following definition: "a trading operation on the Forex currency market is a sequence of actions to execute a purchase or sale transaction in financial instruments with various underlying assets in the organised and unorganised segments of the market, aimed at accomplishing a single purpose, and that objectively needs to be managed because of various kinds of risks".

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