Quote-driven is one of the most commonly used trading methods in the securities market. In this mode, all the quotations of buyers and sellers are summarized to form an order, and the transaction price is determined according to the quotations. Specifically, in the stock exchange, buyers submit orders to the exchange, and sellers also submit orders to the exchange, and then the system automatically matches the orders of buyers and sellers to determine the transaction price. The price shall be subject to the best quotation, that is, the lowest asking price of the seller and the highest bidding price of the buyer.
Compared with the quotation-driven model, the instruction-driven model pays more attention to the needs of buyers and sellers, making the market fairer. In the order-driven mode, investors place orders according to their own wishes, and the system will automatically calculate the price of a single transaction according to the sum of all orders. In the China futures market, all investors' buying and selling orders are collected in the mainframe of the exchange, and the mainframe automatically trades at the same price, thus ensuring the openness, fairness and justice of the market.
In addition to the first two trading methods, there is also a trading model called "broker market". In this mode, investors and brokers directly trade, and the transaction price is not directly linked to the quotation. Brokers play an intermediary role, matching buyers and sellers, helping them to conduct transactions and collecting commissions.
In a word, different securities markets adopt different trading modes, and with the development of technology and changes in the market, these trading modes are constantly being adjusted and optimized. However, in any case, the basic principles of these trading models are based on market demand and trading by various means, thus ensuring the stable and healthy development of the securities market.