
The electronic market process is somewhat different. The order is
transacted on the system (as illustrated in Figure 5.2) and as the
details of the order must agree for the trade to take place there is
immediate matching.
Before a trade takes place, however, there are several key stages and
issues to consider, one of them being the price. We have already
touched on aspects of pricing in earlier chapters and know that in
basic terms pricing is market-driven. Supply and demand dictate the
price of goods and most financial instruments – a preponderance of
sellers forces prices down and vice versa with buyers. But what makes
people buy or sell?
Sometimes it ...