[Verse 1] Behind the ticker symbols flashing green and red Lives a hidden world where algorithms tread Market makers juggle inventory all day long While retail traders place their bets and sing their song Dealers quote the spread between the bid and ask Liquidity providers handle every trading task Institutional giants move with careful precision Each participant plays a role in price decision [Chorus] Market micro-structure, how the gears turn round Bid-ask spreads and order books where prices can be found Limit orders wait in line, market orders race ahead Every trade tells a story in the microstructure web [Verse 2] Limit orders sit like patient soldiers in a queue Market orders charge ahead when traders want to move Stop-loss triggers guard against the downward slide While iceberg orders keep their full size well disguised Electronic networks match the buyers with sellers High frequency robots act as millisecond dwellers Central limit order books reveal the supply demand But dark pools hide intentions from the public's watchful hand [Chorus] Market micro-structure, how the gears turn round Bid-ask spreads and order books where prices can be found Limit orders wait in line, market orders race ahead Every trade tells a story in the microstructure web [Bridge] Time priority rules the matching game Price improvement makes the spreads more tame Fragmentation splits the flow between exchanges While smart order routing calculates the best arranges [Verse 3] Transaction costs eat into every trader's gain Impact costs from large orders cause the price to strain Adverse selection haunts the market making trade When informed investors show their hand and prices fade Settlement happens when the paperwork is done T-plus-two means you wait before your trade has won From order entry to the final execution Market structure drives the trading revolution [Chorus] Market micro-structure, how the gears turn round Bid-ask spreads and order books where prices can be found Limit orders wait in line, market orders race ahead Every trade tells a story in the microstructure web [Outro] Granular mechanics power every single deal In the microstructure world, this is how markets feel
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