Mastering Blockchain - Second Edition

Exchanges

Exchanges are usually considered to be a very safe, regulated, and reliable place for trading. During the last decade, electronic trading has gained more popularity as compared to traditional floor-based trading. Now traders send orders to a central electronic order book from which the orders, prices, and related attributes are published to all associated systems using communications networks, thus in essence creating a virtual marketplace. Exchange trades can be performed only by members of the exchange. To trade without these limitations, the counterparties can participate in OTC trading directly.