What is exchange activity

An exchange is a market in which goods, currency, and securities are traded; each of these objects of trade is called an exchange commodity. The exchange differs from the usual market in the volume of transactions and in that the exchange goods themselves are not represented on it - the participants in the transactions only use the quantitative and qualitative parameters of a particular exchange product that has a standard description and predetermined minimum lot sizes.

How the exchange works

Exchange trading allows you to sell large quantities of commodities in the shortest possible time and at the best current price. It is clear that a person from the street cannot come to the exchange and start selling or buying. Participants in exchange trading can only be members of a particular exchange. These people, in fact, carry out exchange activities. The status of a member of the exchange, which determines the opportunity to participate in the work of elective governing bodies of the exchange, to gain access to commercial information or to advertise in specialized exchange publications, is determined by the form of membership. It is permanent, temporary, daytime. The broadest powers and opportunities have permanent members of the exchange.

Persons engaged in exchange activities are:

- dealers - individuals and organizations that represent themselves only on the stock exchange and carry out transactions at their own risk;

- brokers - professionals who mediate commissions;

- stock analysts and consultants;

- brokers - exchange players speculating on the difference in rates and prices of securities or goods;

- organizers of tenders, administering the operation of a particular exchange;

- Exchange managers responsible for complying with the rules and laws governing exchange activities;

- technical employees ensuring its functioning.