Order Driven Market

Some markets operate by letting buyers and sellers find each other. Others involve the intervention of a third party, a market maker, who becomes a middleman for transactions. It's like the difference between finding stuff on Craigslist vs. going through a consignment store.

An order-driven market describes the kind where buyers and sellers find each other. The bids and asks from market participants are displayed, and then a program helps match them up.

This system stands opposed to a quote-driven market. That situation more closely resembles the consignment store. A market maker displays bids and asks, and then these are matched with buyers and sellers.