Below are five topics for you to describe: Limit order book Continuous and call auctions Flash...

Below are five topics for you to describe:

Limit order book
Continuous and call auctions
Flash crash
Eurobonds
Liquidity suppliers/demanders

Solutions

Expert Solution

Limit order book :

Limit order book is a record maintained by the security specialist who works at the exchange, of the unexecuted limit orders.

Continuous and call auctions :

A continuous market operates continuously during trading hours and trades are executed whenever a buy and sell order match up.On the other hand,in a call auctions market ,orders are collected during the day and at specified times an auction takes place,to determine the price.

Flash crash :

Flash crash is a situation described as an extremely rapid decline in the price of one or more commodities or securities,typically one caused by automated trading.

Eurobonds :

Eurobond is an international bond issued in Europe or elsewhere outside the country in whose currency it's value is stated.

Liquidity suppliers/demanders :

Liquidity suppliers place limit orders.For a round trip (a purchase and sale together) the Liquidity supplier earns the spread.

On the other hand ,a Liquidity demanders place market orders.For a round trip(a purchase and sale together)the Liquidity demanders pays the spread.

jeff jeffy answered 1 year ago

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