Market Microstructure
Discover the hidden mechanics that power financial markets
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Order Types & Execution
The Hidden World of Trading
When you see a stock price of $100.00, you're seeing just the surface. Beneath lies a complex ecosystem of order books, market makers, algorithms, and infrastructure operating in milliseconds. This hidden world—market microstructure—determines who gets what price, when, and why.
What is Microstructure?
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Order Books
All buy and sell orders waiting to be matched, arranged by price
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Liquidity
How easily you can buy/sell without moving price significantly
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Speed
Microsecond advantages that determine who profits from price discrepancies
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Market Makers
Firms that provide continuous buy/sell quotes, profiting from spreads
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Why It Matters
Understanding microstructure reveals why your orders fill at certain prices, how HFT firms profit, what market makers do, and why some traders have systematic advantages. It's the difference between paying the spread and capturing it.