Order Driven Market
The biggest advantage of an order driven market is transparency, since the entire order book is displayed for investors who wish to access this information. Most exchanges charge fees for such information. On the other hand, an order driven market may not have the same degree of liquidity as a quote driven market, since the specialists and market makers in the latter have to transact business at their posted bid and ask prices.
Investment dictionary. Academic. 2012.
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order-driven — Trading services that are based on the order book. London Stock Exchange Glossary * * * order driven ˈorder ˌdriven adjective FINANCE an order driven financial market is one where prices change in relation to orders from brokers and dealers in… … Financial and business terms
order-driven system — / ɔ:də ˌdrɪv(ə)n ˌsɪstəm/, order driven market /ˌɔ:də ˌdrɪv(ə)n mɑ:kɪt/ noun a price system on a stock exchange, where prices vary according to the level of orders (as opposed to a ‘quote driven’ system) … Dictionary of banking and finance
Order Driven — A market is described as being order driven when investors submit, buy and sell orders to a central location where they are then matched. Such markets are continuous auction markets, such as the NYSE. ► See also NYSE, Quote Driven … Financial and business terms
order driven system — A trading system where anyone wishing to buy or sell stock must take their order to the market and state at which price they are prepared to buy or sell the stock in question. Other market participants can then take the other side of the deal,… … Financial and business terms
order-driven system — A trading system where anyone wishing to buy or sell stock must take their order to the market and state at which price they are prepared to buy or sell the stock in question. Other market participants can then take the other side of the deal,… … Financial and business terms
order driven — Denoting a market in which prices are determined by the publication of orders to buy or sell shares, with the objective of attracting a counterparty. Compare quote driven … Big dictionary of business and management
Quote Driven Market — An electronic stock exchange system in which prices are determined from quotations made by market makers or dealers. Also known as a price driven market . This is the opposite of an order driven market … Investment dictionary
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