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. Ask

    The price a seller is willing to accept for a security, also ...
  4. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Alternative Trading System - ATS

    A trading system that is not regulated as an exchange, but is ...
RELATED FAQS
  1. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
  2. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy – and the primary reason why private companies decide to ... Read Full Answer >>
  3. How are labor and capital affected by the balance of trade?

    The balance of trade, or BOT, the net of exports and imports for a given country, also known as the current account, is a ... Read Full Answer >>
  4. Where did the term "capitalism" come from?

    The term capitalism originates from the Latin word capitalis," which literally means "head of cattle." Capitalis comes from ... Read Full Answer >>
  5. When do stock market exchanges close?

    Closing times for stock market exchanges vary, but they generally close in the evening except on holidays. A stock market ... Read Full Answer >>
  6. What are some examples of Cash Flow from Financing (CFF)?

    The cash flow statement is a financial statement showing the net change in cash for a company in a given period. Entries ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  2. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  3. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  4. Options & Futures

    Trading Gold And Silver Futures Contracts

    If you are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities.
  5. Forex Education

    The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.
  6. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.
  7. Trading Strategies

    Risk Management Techniques For Shorting Call Options

    Shorting covered calls is a popular options trade strategy. Here are the methods to mitigate the risk/loss and enhance profits for selling covered calls
  8. Fundamental Analysis

    Making Sense Of The Dow Reaching Record Levels

    When gauging the Dow's shifts in order to assess the U.S. economy and make investment decisions, one must know what the Dow represents,and what it doesn't.
  9. Investing Basics

    What Does The Dow Jones Industrial Average (DJIA) Quote Represent?

    “The Dow” is regarded as the “pulse of the stock market,” as it is one of the most quoted and followed stock market indices by investors, market professionals and media.
  10. Investing Basics

    Charging Bull-The Brass Icon of Wall Street

    The brass "Charging Bull" near Wall Street, the finance world's most famous sculpture, started out as a bizarre stealth gift--initially, an unwelcome one.

You May Also Like

Hot Definitions
  1. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  2. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  3. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  4. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  5. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
Trading Center