centralized market

Definition

A structure in the financial markets that is made up of having all orders transferred to one central exchange with no other competing market. Prices quoted on securities listed on the exchange are representative of the only price available to investors who are looking to sell or buy a specified asset. An example of a centralized market would be the New York Stock Exchange. All orders are routed to the exchange and then are matched with an offsetting order. The foreign exchange market is not considered to be centralized because traders can find competitive rates through a variety of dealers around the globe.
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centralise centre