Market Microstructure (Traditional) Market microstructure studies how orders become trades and how trades become prices. Understanding these mechanics is essential for execution optimization, market making, and detecting informed flow. This skill covers limit order book (LOB) theory as applied to crypto markets on centralized exchanges, and compares LOB mechanics to the AMM-based structure of DEXes. Core Concepts | Concept | What It Tells You | |---|---| | Bid-ask spread | Cost of immediacy — how much you pay to trade now vs later | | Price impact | How your order moves the market price | | O…