Question

Briefly discuss the difference between the following pair: Quote driven and order driven market

Briefly discuss the difference between the following pair: Quote driven and order driven market

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Answer #1

Answer :

Quote driven market are markets that displays bid and ask prices for security by market makers or dealers . On the other hand order driven market are markets where all the bid and ask prices of all the buyer and sellers of the market are displayed . Therefore the main difference lies in the in the dispalys of bid and ask prices .

Another difference lies in the order execution which is guaranteed in quote driven market but not in order driven market.

These are basically the difference of quote driven market and order execution market.

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