Peer trade includes direct and decentralized interactions between two pages without the need for a central broker or an exchange. Here is the basic division:
key players
- Buyer : A page that buys titles (for example, stocks, bonds) from a different angle.
- Seller : A page that sells titles to the buyer.
- Market creators : people or companies who provide liquidity and carry out transactions on behalf of other market players.
Decentralized trading platforms
Peer trade can be facilitated by various decentralized platforms, such as:
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- Bourse platforms : Internet platforms that connect buyers and sellers to negotiate titles.
- Commercial places : Physical locations or online spaces in which market players can interact directly.
Key concepts
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- Liquidity suppliers : Persons or companies that provide liquidity with a commercial platform, allowing faster trade.
- Depth of the market : level of commercial activity in a certain title, reflecting the number of purchase and sale orders.
Benefits
- Increased efficiency : Decentralized commercial platforms can make transactions faster than traditional scholarships.
- Lower costs
: Some decentralized platforms charge lower costs compared to traditional exchanges.
- Improvement of availability : Internet platforms can connect buyers and sellers with a larger range of participants.
Risk and challenges
- Liquidity risk : Market creators or liquidity suppliers may not always be available, which leads to potential price interference.
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- Setting challenges
: Decentralized commercial platforms often work outside traditional regulatory frameworks.
Best practices
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- Set clear objectives , risk management strategies and Stop-Strata levels to avoid significant losses.
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To summarize, peer trade offers a number of advantages, including increased efficiency, lower costs and better availability. However, this is also associated with the risk and challenges that require special attention and caution. Understanding the basics of peer trade, buyers and sellers can make informed decisions to relieve potential traps.