Diff between trade and exchange markets

[dimarikson]

What are the general differences between "trade" and "exchange" markets? Why they are not united?

-- Dmitry

[vlad12]

They very much are united in the sense that they use the same orderbooks.

The only difference is in the execution of orders. Exchange usually assumes a person either wants to buy/sell his/her bitcoins, usually for a purpose, though not necessarily. For example, you have too many bitcoins and you need some cash now, or you find out about bitcoins and are interested in buying a few to use or hold, or you have business buying bitcoins off exchanges and selling them locally with a markup.

With trading, all of it is based on price speculation. People with money wager their money on the movements of the market, this involved trading with margin and applying leverage to your trades, in order to make money in ANY direction of the market.

[btceuropen]

one is only buy and sell, e.g. bitstamp, lakebtc, etc
but the other has a lot of derivative products with financial leverage, they usuaully looks more like a casino