Quote driven trading
A quote-driven market, also known as a price-driven market or dealer's market, is more limited in scope. It only displays the bid and ask offers for a security from designated market makers, dealers, or specialists. These market makers will post the bid and ask price that they are willing to accept at that time. In quote-driven markets, customers trade at prices quoted by dealers that generally work for commercial banks, investments banks, or trading houses. A trading system in which orders trade at prices set by market maker quotes rather than by being matched against other investor's orders (the opposite of order driven system).. The advantage of quote driven systems is that they improve liquidity, because investors can be sure that they can at least deal in reasonably small quantities of shares (large parcels are another matter) at the price