Held-For-Trading Security
Categories: Trading, Regulations
See: Held-to-Maturity Security.
Sometimes, when you go out on a date, you're looking for a long-term relationship. Monogamy. Marriage. Kids (someday). For other dates, you're just looking for a good time. Fun. Excitement. Taking significant precautions to avoid ending up with kids.
That same distinction comes into play for held-for-trading securities and held-for-maturity securities.
Held-for-trading designates a short-term time horizon. You buy the security looking for a quick turnaround. You're going to unload it as soon as you secure an adequate profit. The equivalent of a "just for fun" date.
Meanwhile, held-for-maturity has a long time horizon. You're in it for kids someday, as it were.