Financial Instruments: Trading Mechanism

Happy Saturday!

In this edition, we dive into the world of trading mechanisms, the backbone of financial markets. Understanding how trades are executed, the role of exchanges, and the impact of market makers is essential for anyone navigating financial instruments. Let’s explore the mechanics that drive efficient and dynamic trading environments.

🧑‍💻 In this week’s edition: Financial Instruments

• Monday - Debt Instruments

• Tuesday - Equity Instruments

• Wednesday - Derivatives

• Thursday - Funds and ETFs

• Friday - Hybrid Instruments

• Saturday - Trading Mechanism

Trading Mechanism

Let’s break it down in today discussion:

• Market Orders vs Limit Orders

• Short Selling

• Margin Trading

• Market Makers and Liquidity

Read Time : 10 minutes