What is the difference between a centralized and decentralized trading exchange

[Munareal]

What is the difference between a centralized trading exchange and decentralized trading exchange? How can I know that a trading platform am using is decentralized or centralized .

[Bobcrypto]

A centralized exchange platforms require all data (communications, information,etc.) to enter into, and leave through a central point.
A decentralized exchange platform require information to pass through many points. This is known as a peer-to-peer (P2P) network.

[MVT$]

Basic difference - centralized exchanges usually requires you to create password for your account while decentralized exchanges generates it for you in the form of "seed"

[verifyme]

A centralized exchange platforms require all data (communications, information,etc.) to enter into, and leave through a central point.
A decentralized exchange platform require information to pass through many points. This is known as a peer-to-peer (P2P) network.

I think it is right answer. Centralized exchange usually ask our data, even more some personal data. The examples are Liquid, Binance, Bittrex, Bitfinex, Coinbase, Kraken, and etc. Actually I am a little afraid with this type of exchange even if I use most centralized exchanges. While decentralized exchanges are what we know as P2P network. The examples are WavesDex, Bancor Protocol, EtherDelta, AirSwap, and etc.

[tonymillions84]

centralizied exchange has one central account for deposits but in decentralized exchange, you have access to your account. you trade whenever some needs what you have.

[Helga]

DEXs – 

1) Give a high level of confidentiality
2) Doesn’t rely on the third party service
3) User has a limited functionality of the service.
4) No Trading Fees
5) No hack for central server & downtime

CEXs -

1)   Provide a wide range of capabilities including margin trading, institutional trading and others.   
2)   CEXs are licensed by the governments.
3)   Easy to use (Not for all)
4)   Liquidity
5)   Advanced features

Have a look here in order to pick the right centralized & decentralized exchange software [nofollow] solution for you.