Definition ∞ An exchange executed trade refers to a transaction involving digital assets that is completed directly on a centralized cryptocurrency exchange platform. When a buy or sell order matches another order on the exchange’s order book, the trade is executed by the exchange’s internal systems. These trades typically involve an intermediary and occur off-chain, with only the net settlement impacting the underlying blockchain. This method provides liquidity and price discovery for market participants.
Context ∞ The current discussion around exchange executed trades often relates to the regulatory oversight and security practices of centralized exchanges. A key debate involves the transparency of trading volumes and the potential for market manipulation on these platforms. Future developments will focus on increasing regulatory clarity for exchange operations and enhancing security measures to protect user funds and data.