Trading securities are debt or equity investments acquired for short-term profit.
Any gains or losses on securities held for trading during the period of their holding must be reflected in the balance sheet of the trading company.
In the balance sheet, securities held for sale are considered current assets.
Trading securities are carried at fair value with unrealized gains or losses recognized in profit.
Accounting standards require that debt or equity securities be classified when they are purchased. In addition to held for trading, the classification includes held-to-maturity and available-for-sale.