What is Market Microstructure?

The study of how the specific rules and mechanisms of an exchange affect the trading process.

In-Depth Explanation

Microstructure analysis looks at things like latency, order types, matching engines, and the behavior of market makers and HFT algorithms.

"Understanding market microstructure is vital for developing high-frequency trading strategies."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.