Order Driven Market
A market is described as being order driven when investors submit buy and sell orders to a central location where they are matched. The market price is then derived from this continuous process of matching demand with supply. It is the opposite of a quote driven market where prices are determined from quotations made by market makers or dealers. The disadvantage of an order driven market is that there is no guarantee that an order will be executed promptly as it may be outside the market level when it is made. Its advantage is its transparency: the flow of individual orders can be seen. The New York Stock Exchange (NYSE) is an order driven market.