Trading and Exchanges *US HARDCOVER* Market Microstructure for Practitioners by Larry Harris -9780195144703

Trading and Exchanges: Market Microstructure for Practitioners (1st Edition) by Larry Harris
Overview

This book by Larry Harris, a leading scholar in market microstructure, dives deep into the inner workings of financial markets. It delves into the intricate details of how trading happens, the different players involved, and the rules that govern their interactions.

Key Themes

Understanding the mechanics of various trading venues like exchanges, dealer networks, and electronic communication networks (ECNs)
Analyzing the factors that influence liquidity, transaction costs, and price volatility
Exploring different order types like limit orders, market orders, and stop orders, and their impact on market dynamics
Examining the behavior of market participants such as investors, brokers, dealers, and high-frequency traders
Identifying potential sources of market inefficiency and regulatory considerations
Features

Provides a comprehensive framework for understanding market microstructure concepts
Uses real-world examples to illustrate theoretical concepts
Analyzes the impact of trading strategies on market behavior
Discusses ethical considerations in trading activities like insider trading and scalping
Offers insights into how market microstructure affects investment decisions
Target Audience

This book is geared towards:

Financial professionals, including traders, analysts, and portfolio managers
Academics and researchers interested in market microstructure
Regulatory bodies overseeing financial markets
Students seeking a deeper understanding of financial markets
Strengths

Authoritative and in-depth coverage of market microstructure topics
Clear and concise explanations of complex concepts
Strong focus on practical applications and real-world scenarios
Well-structured with a logical flow of information
Chapter Headlines (Examples)

Introduction: Markets and Market Microstructure
Single-Price Auctions, Open Outcry Auctions, and Brokered Markets
Order Types and Trading Systems
Market Liquidity, Order Book Dynamics, and Transaction Costs
Market Maker Behavior and Inventory Management
Price Discovery and Informational Efficiency
Short Selling, Market Impact, and Algorithmic Trading
Insider Trading, Market Manipulation, and Regulation
Closing Paragraph

"Trading and Exchanges: Market Microstructure for Practitioners" by Larry Harris equips readers with a thorough understanding of the intricate workings of financial markets. By delving into market microstructure, the book empowers practitioners to make informed trading decisions, researchers to conduct insightful analysis, and regulators to design effective market rules.