Description

Why equity markets are highly liquid, transparent, and cost-efficient, highlighting electronic trading and exchange rules. Key equity order types, agency vs. risk trading, along with their pros and cons. The structure of an electronic order book, including bid and ask prices, and how these determine immediate buy and sell opportunities.

Learning Objectives

---

1. Identify key features of equity markets, including liquidity, transparency, and cost efficiency.
2. Interpret how electronic order books display bid and ask prices.
3. Distinguish between agency and risk trading, and recognize their respective advantages and disadvantages.
4. Analyze the structure of the order book to determine immediate execution opportunities.
5. Compare price levels for buying and selling within the order book.