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Terms in this set (45)
derivative a financial instrument whose value depends on (or derives from) the values
of other, more basic, underlying variables
open outcry system involves traders physically meeting on the floor of the exchange, shouting,
and using a complicated set of hand signals to indicate the trades they
would like to carry out
electronic trading involves traders entering their desired trades at a keyboard and a computer
being used to match buyers and sellers
algorithmic trading involves the use of computer programs to initiate trades, often without
human intervention
over-the-counter market a decentralized market without a central location where market participants
trade with one another through various communication modes such as the
telephone,email, and proprietary electronic trading systems
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