u see. banks have propriataty tarders.. which i m.. we will have two types of positions..
one..bank will have a strategic position.. which is long term in nature.. and MTM is done daily .. and is held over a period of time..
but that dosnet mean as a trader i will ignore the intraday trading opportunities. if I have a strategic position .. say long.. but i feel market will see an intraday dip once before coming back again.. i can always sell during the day.. and buy back again before market closes.. thus keeping my strategic position intact.. but at the same time earning on the intraday volatility and hence improving my holding cost for strategic position..
no bank stops its traders from taking intraday positions.. so your information is though not incorrect .. is incomplete... bank can have a strategic positions.. but in current market.. with extreme volatility if one dosent have a long term, view.. then Bank may not hold a strategic position.. but will try to play only on intraday volatility..
any other query.. pls shoot
cheers