Chapter 6 is where Harris explains the actual machinery that matches buyers with sellers. If you ever wondered what happens between the moment you hit “buy” and the moment your order fills, this is the chapter.
Chapter 5 is where Harris gets into the actual plumbing. You know how in previous chapters we talked about types of traders and types of orders? Now we are looking at the arena where all that happens. Market structure. The rules, the systems, and the “who gets to trade with whom” part.
Order-driven markets are where most of the action happens. Almost every major exchange in the world is order-driven. If you understand how these markets match buyers to sellers and price the resulting trades, you understand the mechanics of modern trading. Chapter 6 of “Trading and Exchanges” breaks it all down.
Not all markets work the same way. The rules, the systems, and the structure of a market determine who can trade, what information they can see, and who actually makes money. Chapter 5 of “Trading and Exchanges” lays out a framework for understanding market structures. And once you understand this framework, you can look at any market in the world and quickly figure out how it works.