TradeReply Categories

Category – Fragmentation

Fragmentation refers to the existence of multiple, often competing, markets and platforms where assets are traded, resulting in a lack of centralized liquidity. In trading, fragmentation can make it challenging to access the best prices, as different exchanges may offer different bid-ask spreads for the same asset. Traders may use smart order routing systems to navigate fragmented markets, ensuring they get the most favorable execution prices across multiple platforms and exchanges.