A financial asset (FA) that is held for the purpose of selling or repurchasing it in the short term. It is classified as held for trading (HFT) if it is acquired principally for the purpose of being sold or repurchased it in the near term, and it forms part of a portfolio of identified financial instruments that are managed, as one group, and for which there is evidence of a recent pattern of short-term profit-taking. It might also be classified as for trading if it is a derivative (but not a financial guarantee contract or a designated and effective hedging instrument).

Fair value of a held for trading financial asset is recognized in the income statement in a line item titled net income/ (loss) from trading.