Order Driven Trading
In an order driven system, only different types of orders supply liquidity to the market without the intervention of market maker or jobber. Order execution follows a strict price time, priority unlike a quote driven system, where preference is given to jobber orders at the expense of public orders. This reduces the problems of high spreads, monopoly power & market manipulation. Orders which are allowed into the system are conditional upon price [market & limit orderss], time [GTD, GTC, etc.s], quantitity [AON, MF, etc.s] & other special conditions such as IOC, etc. |
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