Centralized Market

AAA

DEFINITION of 'Centralized Market'

A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.

INVESTOPEDIA EXPLAINS 'Centralized Market'

The New York Stock Exchange is considered a centralized market because orders are routed to the exchange and are then matched with an offsetting order. On the other hand, the foreign exchange market is not deemed to be centralized because there is no one location where currencies are traded and it is possible for traders to find competing rates from various dealers from around the world.

RELATED TERMS
  1. Bitcoin

    A digital or virtual currency that uses peer-to-peer technology ...
  2. Linden Dollar

    A digital currency utilized in the virtual world Second Life. ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Ask

    The price a seller is willing to accept for a security, also ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. Quote

    1. The last price at which a security or commodity traded, meaning ...
Related Articles
  1. Options & Futures

    Getting To Know The Stock Exchanges

  2. Options & Futures

    The NYSE And Nasdaq: How They Work

  3. Investing

    Clean Or Green Technology Investing

  4. Options & Futures

    Trading Gold And Silver Futures Contracts

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center