Definition and types of exchanges

The exchange as an instrument of the economy has firmly entered the modern society. This is the place of wholesale trade for a certain type of goods, which is carried out in a strictly designated place and at the set time. Bidding is public. There are separate types of exchanges. In this article will go about the various exchanges and their functions.

Exchange trade is of great importance. First, it allows you to combine supply and demand in a specially designated place. There is a determination of the price, which serves as a benchmark even outside the exchange.

Secondly, the exchange gives a complete picture of the market and product ability in this market. You can analyze the primary directions of production: price, quality, demand and supply.

Thus, we can say that the role of the exchange in the economy is great. It is a regulator and one of the main levers of market management.

Depending on what the objectives pursue bidding, allocate commercial and non-commercial exchanges. In the West, and in Russia, mostly non-profit exchanges, which exist due to contributions.

By availability, the types of exchanges are open and closed. This determines the degree of openness of bidding for all comers. Only accredited people can trade on closed exchanges.

The main types of exchanges are determined by the commodity that is sold for them. Let us dwell in more detail on this division.

Commodity exchanges

Commodity exchange is intended for the sale of goods and raw materials by wholesale lots. Many goods are produced very far from the place of consumption. Commodity exchange is a tool for regulating the implementation process, the supply of these goods. The main part of this system is the world commodity exchanges. They allow to regulate the price level for goods and raw materials according to the available supply and demand. Commodity exchanges allow you to control price changes and predict their fall or takeoff. At their auctions, large quantities of goods are sold, so the price level is easily regulated. So the world prices for each type of raw materials and goods are established.

Types of exchanges trading in goods and raw materials differ only in the subject of trade. The functions and principles of their work are the same.

Stock Exchanges

Stock exchanges are engaged in the sale of securities and some other financial instruments. In this regard, on these exchanges can be accumulated large capital. In the future, they can be used for production purposes.

On the stock exchanges, trades in shares, bonds, including state loans, take place.

The meaning of trading on stock exchanges is to buy securities at a price that in the future can be much higher. The difference and make a profit.

The stock exchange is engaged in organizing and servicing trade. There are the following types of stock exchanges, which may differ in the quality of the securities admitted , as well as in their type. Also, the stock exchange may differ in the types of transactions and technology.

Depending on the type of securities distinguish: the markets of stocks, bonds, derivative securities and subscription rights.

Depending on the transactions, exchanges are divided into the market of regular deals, futures deals and cash transactions.

By the type of technologies used, exchanges are divided into traditional and computerized.

Currency exchanges

Currency exchanges are engaged in selling currency and setting quotes. Exchange rates of various countries are fixed and, thus, the currency exchange fulfills its main role.

Labor exchange

The labor exchange is the link between organizations, entrepreneurs and employees. Such an exchange has a sufficient base of available vacancies and the same base of employees of different professions who are looking for work.

Types of exchanges can be different, but they all serve as a market instrument, through which the exchange of values or information. Their role in the economies of the whole world is enormous, no matter in which area they specialize.