Quote Driven


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Quote Driven

Describing an exchange where the bid-ask spread is determined by quotes given by dealers or market makers with the duty to maintain a liquid market. A quote driven market contrasts with an order driven market, where the bid-ask spread is determined by orders directly by investors. A quote driven market is also called a price driven market and is usually on an electronic exchange.
References in periodicals archive ?
Since forex market all over the world is quote driven and is regulated by the central bank, hence operating in this market has unique problems of its own.
Quote driven - The market would be a telephone market supported by market makers or specialists, much like the markets of a decade ago.
quote driven with quote increments at 10 and 20 cents, and
Jiway Limited is an electronic order and quote driven market providing a single access point to shares from the UK, Sweden, France, US, Germany, Italy and The Netherlands, with guaranteed liquidity and prices no worse than the underlying exchange.