There are different exchanges in the world: stock, commodity, futures, financial.
The trading exchange has the form of a platform, the participants of which conduct operations and execute transactions:
- currency exchange;
- purchase and sale of goods, shares, valuable documents;
- conclusion of the derivative.
Derivatives mean the agreement to buy or sell an asset at the moment when its value reaches the desired level.
In other words, the exchange functions in much the same way as the average food market, that is, everything depends on the supply-demand equilibrium. And according to the rules of bidding: the higher the demand for certain products, the higher its value.
What is a stock exchange?
A stock exchange is a type of trading platform where the commodity is valuable documents: bills of exchange, shares, certificates, bonds and registered securities.
Basically, new participants in exchange trading conduct their first operations in the stock market, because it has several significant advantages.
Understated entry level - unlike direct investments in real estate or private entrepreneurship, the amount of the initial contribution to the purchase of valuable documents can start from one hundred dollars. Having invested in an apartment, it is not possible to add a couple of squares to it after a certain time. At that moment, the number of purchased securities can be easily replenished with partial small investments.
Reliability and security – stock trading is open to a wide range of users and is strictly controlled by government agencies. This is necessary in order to protect depositors and guarantee the safety of their investments and valuable documents.
What is a commodity exchange?
The commodity exchange is a platform where the following products are: fuel, gold, precious metals, coffee, sugar.
As a rule, the work of the commodity exchange is aimed at concluding contracts among companies whose purpose is to purchase raw materials for business development at a favorable cost.
Small private investors and individuals do not have an entrance to the commodity exchange.
What is a currency exchange?
A currency exchange is a platform where the currency of different countries is purchased, sold or exchanged at a rate valid for a certain time period, the duration of which depends on supply and demand.
The main purpose of the functioning of the currency exchange is not to have a high income, but to redistribute free financial resources between different sectors of the economy. Thus, the correct market exchange rate of the national currency and foreign money is established in conditions of fair, competitive and legitimate trade.