Course: Foundations·Lesson 1 of 3·5 min read·Last reviewed 1 May 2026
What is a market?
Markets are matching engines — not apps, not charts, not tips.
Dr. Maya Halloran
CFA · 14 yrs on a commodities prop desk · ex-lecturer, NYU Stern
By the end of this lesson you'll be able to:
- Define what a financial market does in one sentence
- Explain why prices move when buyers and sellers disagree
- Identify who provides liquidity on most retail platforms
Markets are matching engines
A market is not a building or a website — it is a system that matches buyers and sellers. When prices move, it is because available liquidity shifted: more people wanted to buy than sell at the old price, or the reverse.
Market
A venue where buyers and sellers meet to trade financial instruments at prices set by supply and demand.
Retail platforms show you a price, but that price exists because someone — often a market maker or another participant — is willing to take the other side. Understanding that relationship is the foundation of everything that follows.
Quiz — Test your understanding
1. What is the primary function of a financial market?
2. Why do prices move?
3. Who is often on the other side of a retail trade?
Next lesson
What is a broker, really?
- Explain the difference between a broker and an exchange
- Identify the three regulatory tiers a retail broker can sit in
6 min readContinue to next lesson