Exchange – the legal entity responsible for the constant functioning of the market exchange of assets between the subjects (participants) of the transaction. In the nineteenth century exchange was a room where there were trades between real people, and trade on the exchanges of the world were carried out by the shouts of the bidders and quotes were written with chalk on blackboard.
Trade on the stock exchanges of the world: contemporary relevance
Modern exchange – this high-tech company that represent access to a huge number of types of transactions: trade classical instruments (stocks, currencies, gold), derivatives (futures, options), specific instruments (swap, contract for difference, warrant, etc. Data transfer speed between traders around the world is provided by a unique electronic trading system.
Depending on the type of asset exchanges there are commodity, currency, futures, stock. In this sense, the term “exchange” may be hiding the designation of a large holding consisting of several trading venues, located all over the world and offering brokers a virtually complete range of services (trade in financial instruments, clearing, depositary services).
Participants of trading on the exchanges of the world can be divided into such groups:
- Those who enter into transactions with each other on the trading platforms. In the role of traders can act as individual natural persons, and large entities – banks, pension, insurance, investment funds, etc..;
- They perform a mediating role by linking through stock exchanges traders with each other and providing liquidity providers via the most rapid execution of the transaction at the best price;
- liquidity providers. Organizations providing transactions at the best price, interconnect traders, brokers, etc., thereby reducing the spread and trade costs. Liquidity Provider forms a common network, whose members receive real-time news and quotes;
- regulators. Association consisting of participants of the exchange trade or a legal entity that monitors the transparency of transactions on the exchanges and ensuring the rights of investors and other market participants. Develop sets of rules for the functioning of global markets stock trading.
In fact there are much more trading participants on the stock exchanges of the world: brokers, dealers, market-makers – they also perform a role.
(цитата) On website pages you will find useful financial information and information about the regulators and the brokers in the context of stock markets, and useful trading strategies and many more that is needed in order to make your trade on the exchanges of the world the most successful and profitable!
Below we have compiled a list of the main stock markets of the world, which daily make millions of transactions, and are the largest by daily turnover and capitalization:
- ICE – Intercontinental group, which unites the stock and futures platforms around the world. One of the largest organizations;
- NYSE Euronext – American-European exchange platform, which is a part of the ICE, but its extent deserves separate consideration;
- СМЕ – Chicago Mercantile Exchange, is a huge financial group, competing only with ICE;
- Deutsche Boеrse – The Frankfurt exchange, which after the merger with the LSE will be included in the top 5 largest exchanges in the world;
- LSE – London stock exchange;
- NASDAQ – stock exchange of the United States, in the field of specialization which includes high-tech company;
- TSE – The Tokyo stock exchange, the largest organization in the Asian stock market;
- SSE – The Shanghai stock exchange;
- HKEx – Hong Kong stock exchange;
- МБ – Moscow exchange.
Trade on the exchanges allows traders to make transactions around the clock during the 4 trading sessions.
Each of these exchanges has a unique story and pursues its specific functions: some of them want to earn commissions, and some of them are a non-profit organization, taking part in the regulation of the national economy; some are on the path of the acquisitions of those who have need to trade tools, and some of them develop unique technological solutions. But these exchanges have something in common: due to their functionality you, dear readers, guests, investors of Investlb.com portal can quickly make deals around the world.
A nice dive into the abyss of trading on stock exchanges in the world together with the financial exchange portal Investlb.com!