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Trading Derivative
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Trading Derivative
A distinction made in some
Financial Accounting Standards Board (FASB)
statements. A
free-standing derivative
that is held by an accounting entity for trading or inventory purposes. The changes in value of a trading derivative are marked-to-the-
market
in the earnings account during each accounting period. See also Free Standing Derivative,
Held for Risk Management (HRM) Derivative
.
Glossary
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