Trading venues – where money meets… other money

First, let me note that despite the overall colloquial language used in this book, I am always trying to stick to the traditional academic approach that follows the same paradigm: definition | logical conclusions | theory | experiment | proof. Without proper definitions, especially when we talk about the foundation of the subject domain, we won’t be able to make logical conclusions, suggest a theory, or test and finally prove a theory – which in our case, means making money. In even simpler words, without a full understanding of the subject, we are unable to suggest appropriate methods to use it.

So, as we mentioned in Chapter 1, financial markets facilitate buying and selling assets at special marketplaces called trading venues. A bit too vague to be useful, right? Well, let’s go into specifics.

Organizing chaos – types of trading venues

A trading venue in the financial world is a place...