The exchange as a tool of the economy has firmly entered into modern society. This is a place of wholesale trade in a certain type of product, which is carried out in a strictly designated place and at a specified time. Bidding is public. Distinguish between certain types of exchanges. This article will focus on various exchanges and their functions.
Exchange trading is of great importance. Firstly, it allows you to combine supply and demand in a 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 ability of the market and goods in this market. You can analyze the preferred areas of production: price, quality, supply and demand.
Thus, we can say that the role of the exchange in the economy is great. This is the regulator and one of the main levers of market management.
Depending on what the objectives of the bidding, there are commercial and non-profit exchanges. In the West, and in Russia, mainly non-profit exchanges operate, which exist through contributions.
By availability, the types of exchanges are open and closed. This determines the degree of openness of bidding for all comers. On closed exchanges, only accredited people can make transactions.
The main types of exchanges are determined by the goods that are sold on them. Let us dwell on this division.
Commodity Exchanges
The commodity exchange is intended for the sale of goods and raw materials in bulk. 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 are world commodity exchanges. It is they that allow you to adjust the price level for goods and raw materials in accordance with existing demand and supply. Commodity exchanges allow you to control price changes and predict their fall or rise. At their auction, large quantities of goods are sold, so the price level is quite easily regulated. This sets world prices for each type of raw material and product.
The 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 sell securities and some other financial instruments. In this regard, large capital can be accumulated on these exchanges. In the future, they can be used for production purposes.
Stock exchanges are trading stocks, bonds, including government loans.
The meaning of trading on stock exchanges is to buy securities at a price that may become much higher in the future. The difference is profit.
The stock exchange is engaged in the organization and maintenance of trade. The following types of stock exchanges exist, 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, they distinguish: stock markets, bonds, derivative securities and subscription rights.
Depending on transactions, exchanges are divided into the market for regular transactions, derivatives transactions and cash transactions.
By the type of technology used, exchanges are divided into traditional and computerized.
Currency Exchange
Currency exchanges sell currency and set quotes. The 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 workers of various professions who are looking for work.
The types of exchanges may be different, but they all perform the function of a market instrument, due to which the exchange of values or information takes place. Their role in the economy of the whole world is huge, regardless of the area in which they specialize.