Venue that matches buyers and sellers but is not a traditional exchange.
Market Structure terms
Plain-English definitions for trading, broker safety, market structure, and risk terms.
Arbitrage
Market StructurePrice discrepancy trade
Strategy seeking to profit from price differences in the same or related assets.
Auction Market
Market StructureOrder-driven market
Market where buyers and sellers submit orders and prices are set competitively.
Block Trade
Market StructureLarge negotiated trade
Large transaction privately arranged or specially handled to reduce market impact.
Clearing
Market StructureTrade clearing
Process of confirming, matching and preparing trades for settlement.
Clearing House
Market StructureCentral counterparty
Organization standing between buyers and sellers to manage obligations and counterparty risk.
Counterparty
Market StructureOther party
Other side of a financial transaction or contract.
Dark Pool
Market StructureNon-displayed venue
Private trading venue where orders are not displayed publicly before execution.
Arrangement allowing orders to be routed directly to venues or liquidity pools.
Exchange
Market StructureTrading venue
Regulated marketplace where financial instruments are listed and traded.