Order Driven Market
An order driven market is a financial market structure where buy and sell orders from participants are directly matched against each other without intermediaries like market makers. It operates on a price-time priority basis, where orders are executed based on price (best price first) and then time of submission. This system is common in stock exchanges and electronic trading platforms, providing transparency and efficiency in price discovery.
Developers should learn about order driven markets when working on financial technology (fintech) applications, trading platforms, or algorithmic trading systems. It's essential for building or integrating with stock exchanges, cryptocurrency exchanges, or any system that requires real-time order matching and execution. Understanding this concept helps in designing scalable, low-latency systems that handle high-frequency trading and ensure regulatory compliance.