4

Trading Practices

The business press frequently talks about a “global market” as if it were a single amorphous trading environment. In reality, the markets are a series of linked but independent trading venues. Investors and traders require a strategy if they wish to participate as “global traders.” This chapter describes some of these trading strategies (see Figure 1.4).

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Figure 1.4 Global trading practices determine how orders are routed, which entity controls the order pending execution, and how the executions are effected.

In the graphics throughout this chapter, we assume that the participants in Region 1 are active and are instigating whatever ...

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