Market Structure
12 lessons in this track so far, in the order we suggest reading them.
Venues and Participants
IntermediateExchangesExchanges are regulated marketplaces where buyers and sellers trade. Learn what exchanges do, the major ones worldwide, how they make money and listing rules.IntermediateECNsAn ECN is an electronic system that matches buy and sell orders directly. Learn how ECNs work, their fees and rebates, ECN forex accounts and their role today.IntermediateDark PoolsDark pools are trading venues that do not display orders before trades happen. Learn why they exist, how they work, the concerns about them and how they affect you.IntermediateOTC MarketsOver-the-counter markets trade directly between parties instead of on an exchange. Learn how OTC markets work for stocks, bonds, forex and derivatives.IntermediateClearing Houses and Central CounterpartiesClearing houses stand between buyers and sellers so every trade is honoured. Learn how central counterparties work, margin, default funds and why they matter.IntermediatePrime BrokersPrime brokers provide hedge funds and professional traders with financing, securities lending, custody and execution. Learn what they do and the risks involved.IntermediateMarket Makers and Liquidity ProvidersMarket makers quote prices to buy and sell all day, earning the spread. Learn how they make money, manage risk, why they matter and the myths about them.
Order Books and Price Formation
IntermediateThe Order Book and Market DepthThe order book lists every waiting buy and sell order by price. Learn to read market depth, what imbalances show, spoofing risks and how depth affects fills.IntermediatePrice DiscoveryPrice discovery is how markets combine buyers' and sellers' information into a price. Learn how it works, where it happens and what helps or harms it.IntermediateTick Sizes and Lot SizesTick sizes set the minimum price step and lot sizes set the minimum trade size. Learn how both are chosen, how they shape spreads and queues and recent rule changes.IntermediateOpening and Closing AuctionsExchanges open and close with auctions that match orders at one price. Learn how auctions work, imbalance data, why the close is so busy and how traders use it.IntermediateMeasuring LiquidityLiquidity can be measured with spreads, depth, volume, turnover and price impact. Learn the key measures, formulas and how to use them before you trade.