What is a hybrid market?

The hybrid market is a stock exchange that uses both traditional trade floor and some type of electronic trading that allows purchasing and sales activities to take place. Markets of this type provide investors with alternatives for trading and can be used interchangeably with relative ease. Today, many intermediary houses are structured to allow brokers to use both approaches, ensuring their ability to order customers as quickly as possible. This broker is located on a real trade floor and has immediate access to what is happening with all investments traded on the stock exchange. In situations where clients placed a type of permanent business order, the floor broker can assess the current situations, determine whether it is time to make an order and place it in seconds.

Electronic communication network helps to participate in the hybrid market without being physically present on the trade floor. Although it can take a few more seconds to getThe update of the current movement of various investments on the stock exchange, the faster process of ordering compensates for this slight loss of time. For some intermediary houses, the costs associated with the use of electronic approach to the stock exchange are also minimized. This also allows the broker to keep profit for his efforts and sometimes give clients a more cost -effective way of purchasing and sales on the stock exchange.

For some investors and brokers, the use of more traditional possibilities with a hybrid market is preferred, simply to quickly identify opportunities that can be overlooked otherwise due to the interaction and ability of a subtle broker of the floor. Speed ​​can be particularly important when the broker uses a specific strategy concerning the specific securities that the investor has identified and is less focused on finding emerging opportunities for their clients.

is the importantObans realize that there may be some limitations on the extent of stocks that can be traded by both approaches to the hybrid market. While all stock stock shares can be traded using a traditional trading floor, several can be excluded from trading using an electronic communication system. Over time, this has become a less problem, as the electronic approach has gained popularity and more stock options can be traded by both resources.