Order Driven Market

A financial market where all buyers and sellers display the prices at which they wish to buy or sell a particular security, as well as the amounts of the security desired to be bought or sold. This is the opposite of a quote driven market, which is one that only displays bids and asks of designated market makers and specialists for a specific security.

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. . 2012.

Look at other dictionaries:

  • 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

  • Market maker — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Market failure — is a concept within economic theory wherein the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better off without making someone else… …   Wikipedia

  • Market customization — “Customize”– to modify (something) according to a customer’s individual requirements. [Collins English Dictionary, 8th Ed 2006. Harper Collins Publishers.] Micro Marketing include, segment, niche, local and custom.Future of mass productionMass… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.