electronic trading

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Trading stocks and shares or commodities through the use of a computer network. The network transmits information on offers to trade by market-makers and others, and data of trades done. It can also be made to conduct the actual trades, though this part is often still done by telephone. Electronic trading is contrasted with the traditional market organization of having individual dealers meet and proceed by ‘open outcry’, that is, trade conducted verbally with all offers and trades done out loud so that competitors on both sides of the market can follow what is happening.

Subjects: Economics.

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