This book, even though not a quick or simple read, should be part of every serious trader’s library. It’s a comprehensive discussion of financial markets:
- how markets work
- what makes them work
- the rules that govern them
“Trading and Exchanges” is not a book limited to the Forex. It does not discuss specific trading strategies or technical analysis when trading the Forex. Rather it introduces topics and concepts common to all financial markets every single market participant should understand.
Larry Harris, the author, discusses concepts vitally important to every trader including:
market liquidity, liquidity suppliers, volatility, trading costs, pricing structure, order types, trading rules, trading systems and insider trading, just to name a few.
The book covers the different exchanges and the rules governing them. Explained is the difference between trading, investing and gambling and much, much more.
Complex concepts are introduced and explained in detail via discussion, graphs, tables, examples and sidebar highlights. Mr. Harris provides many examples illustrating and breaking down even somewhat difficult to understand topics for the retail trader.
After reading “Trading and Exchanges” you’ll understand what happens when you place a trade and how it gets executed. You will come to appreciate how liquidity is provided and maintained in the markets.
If you want to reach a new level of understanding and truly understand what makes markets and the people trading them tick, this might just be the book for you.