Market Microstructure: Exploring the Mechanics and Dynamics of the Financial Market
Introduction The study of market microstructure plays a crucial role in understanding the intricate mechanics and dynamics of the financial market. It delves into the inner workings of the market, focusing on factors such as order flow, liquidity, market impact, and the role of market makers. By examining these aspects, market participants can gain valuable insights into price formation, trading strategies, and overall market efficiency. In this article, we will…