Centralized Market
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. |
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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. |
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