A trading protocol refers to a set of rules and standards that govern how transactions occur on a cryptocurrency exchange or platform. These protocols dictate how trades are executed, how orders are matched, and how prices are determined.In decentralized exchanges, trading protocols allow users to perform transactions directly with one another without intermediaries. They often utilize smart contracts to automatically handle trades, ensuring that conditions are met before execution.Common types of trading protocols include automated market makers (AMMs) and order book models. AMMs allow users to trade against liquidity pools while order book models match buy and sell orders from users. Both systems aim to improve efficiency and liquidity in the trading process.Protocols can vary significantly in terms of features, security, and user experience. As the cryptocurrency market evolves, new trading protocols emerge, each aiming to address specific challenges or enhance usability for traders.