Trading mechanisms are the systems and processes that facilitate the buying and selling of financial assets, such as stocks, bonds, and commodities. These mechanisms can include various platforms, like stock exchanges, where buyers and sellers come together to execute trades. They ensure that transactions are conducted efficiently and transparently, often using technology to match orders and provide real-time pricing information. Different trading mechanisms can be categorized into types, such as order-driven markets and quote-driven markets. In order-driven markets, trades are executed based on the orders placed by participants, while quote-driven markets rely on dealers who provide prices for buying and selling. Each mechanism has its own advantages and challenges, influencing how trades are conducted.