Book Review - Market Know How: Finance and Market

Francesca Taylor is a renowned trainer in the finance sector. She is the writer of books such as "Mastering Derivative Markets" and "Mastering Exchange and Currency Options".

"Market Know How: Finance and Markets" is aimed for anyone who wishes to have a bird's eye view of the finance markets (securities, derivatives and foreign exchange), introducing to them many of the core concepts, terminologies and practices. What are "bips, pips and ticks"? When is "mine"? When is "yours"?

People who are working in the industry but not in the front desk would also find the book useful. For me, I benefitted much from the insights in the chapters on settlement of securities and OTC derivatives transactions, and risk management.

Unlike other books on finance, the book has devoted a chapter on proper behaviour. The advice from the contributor (Francesca had invited a number of market professionals to write specific parts of the book, which makes the book even more relevant for the readers) will serve a reminder to tyros but also old hands as to the expectations of the society, as well as the law on them, in particular after the 2008 financial crisis.

The Glossary at the back of the book is a part not to be missed, too. First, it provides handy reference to the market jargon. Secondly, reading through it reinforces the reader's understanding of the book.

Given the fast pace of development of the finance industry, the length of the book, and that the book was published in 2009, the readers could not reasonably expect Francesca to cover topics such as the ICE LIBOR, introduction of LEI and detailed coverage of the calculation and valuation of derivatives. For those eager readers, they may refer to other works of Francesca and websites of bodies like the Financial Services Authority and ISDA.

All in all, the book "Market Know How: Finance and Markets" is a useful addition to the bookshelf of anyone who aspires for a career in finance.