Contents

1 Introduction

2 Trading Stories

Part I
The Structure of Trading

3 The Trading Industry

4 Orders and Order Properties

5 Market Structures

6 Order-driven Markets

7 Brokers

Part II
The Benefits of Trade

8 Why People Trade

9 Good Markets

Part III
Speculators

10 Informed Traders and Market Efficiency

11 Order Anticipators

12 Bluffers and Market Manipulation

Part IV
Liquidity Suppliers

13 Dealers

14 Bid/Ask Spreads

15 Block Traders

16 Value Traders

17 Arbitrageurs

18 Buy Side Traders

Part V
Origins of Liquidity and Volatility

19 Liquidity

20 Volatility

Part VI
Evaluation and Prediction

21 Liquidity and Transaction Cost Measurement

22 Performance Evaluation and Prediction

Part VII
Market Structures

23 Index and Portfolio Markets

24 Specialists

25 Internalization, Preferencing, and Crossing

26 Competition within and among Markets

27 Floor versus Automated Trading Systems

28 Bubbles, Crashes, and Circuit Breakers

29 Insider Trading

Bibliography