<p>An <strong>order-driven market</strong> is a type of financial market where orders from participants determine the price and volume of assets traded. Unlike dealer markets, there's no intermediary setting the prices; instead, orders interact to create a fair market value.</p>

<h2>How It Works</h2>
<p>In an order-driven market, participants submit <strong>buy</strong> or <strong>sell</strong> orders to the market. These orders are then matched by an exchange's trading system based on price and time priority. Here's a simplified breakdown:</p>
<ul>
  <li>Traders submit orders (e.g., buy 100 shares of XYZ at $50).</li>
  <li>Orders are placed in an order book, sorted by price and time.</li>
  <li>When a matching order is found (e.g., a sell order for 100 shares of XYZ at $50), a trade is executed.</li>
  <li>This process repeats continuously, with the highest bid and lowest ask prices determining the market's best bid and offer (BBO).</li>
</ul>
<p>MetaTrader 5, used by STB Provider, facilitates order-driven trading by allowing clients to place and manage orders directly in the market.</p>

<h2>Why It Matters for Traders</h2>
<p>Order-driven markets offer several advantages to traders:</p>
<ul>
  <li><strong>Transparency</strong>: Prices are determined by the collective will of market participants, providing a clear view of supply and demand dynamics.</li>
  <li><strong>Liquidity</strong>: High trading volumes and a large number of participants can lead to deep liquidity, making it easier to enter and exit positions.</li>
  <li><strong>Tight Spreads</strong>: Since there's no dealer setting the prices, spreads can be tighter, benefiting traders, especially those using strategies like scalping or news trading.</li>
</ul>

<h2>Example</h2>
<p>Consider the EUR/USD currency pair on MetaTrader 5. You want to buy 1.5 lots at the current market price. You place a market order, and your order is matched with a sell order from another trader at the best ask price. The trade is executed at the current market price, and you've just participated in an order-driven market.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>In an order-driven market, orders from participants determine asset prices and trading volumes.</li>
  <li>Orders are matched based on price and time priority in the order book.</li>
  <li>Order-driven markets offer traders transparency, liquidity, and tight spreads.</li>
</ul>