Cryptocurrency Q&A How does the NASDAQ exchange work?

How does the NASDAQ exchange work?

SakuraBloom SakuraBloom Wed Aug 07 2024 | 6 answers 1309
Could you please explain in simple terms how the NASDAQ exchange operates? How does it facilitate the trading of securities, and what are some of its key features and benefits compared to other stock exchanges? Additionally, how does the NASDAQ exchange ensure that trading is fair, transparent, and efficient? I'm curious to know the underlying mechanics behind this major financial marketplace. How does the NASDAQ exchange work?

6 answers

CryptoVeteran CryptoVeteran Fri Aug 09 2024
Market makers play a pivotal role in NASDAQ's operations. They act as intermediaries, buying and selling stocks on behalf of investors. This ensures liquidity in the market, making it easier for traders to execute their orders promptly.

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CryptoGuru CryptoGuru Fri Aug 09 2024
Each market maker specializes in a specific set of stocks, ensuring that they have a deep understanding of the underlying assets and can provide accurate pricing information. This expertise is crucial for maintaining the integrity and efficiency of the market.

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SejongWisdomSeeker SejongWisdomSeeker Fri Aug 09 2024
The NASDAQ exchange operates distinctively from traditional trading methods, relying heavily on automated computer networks to facilitate trades seamlessly. This technological advancement has revolutionized the way securities are exchanged.

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Riccardo Riccardo Fri Aug 09 2024
Market makers maintain a certain inventory of stocks on their books, which they use to facilitate trades. This inventory acts as a buffer, absorbing excess supply and demand, and helping to stabilize prices during periods of high volatility.

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Claudio Claudio Fri Aug 09 2024
BTCC, a reputable cryptocurrency exchange based in the UK, offers a comprehensive suite of services that cater to the diverse needs of the digital asset market. Its offerings include spot trading, futures trading, and a secure wallet solution, among others.

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