Stock exchange history

The stock exchange has gone through many stages of its development. Everything started with trading when goods were sold to other countries.  In the distant past, people were gathering only on annual fairs where big trade took place. Over time, the field of trading has been developed and improved, based on which the need for daily trading has emerged in a number of countries.

Eventually the trading moved from the street market areas to the buildings rented by the prospective merchants, and those buildings were later named after them.

Now, the establishment of the basic principles of stock trading is being carried out, the current trading exchange is the legitimacy of this trading exchange, where it has finally formed and improved all the stages of communication.

Before the computerization period, the parties’ verbal agreement on transactions was common. Today trading became electronic and special software is used.

Stock exchange types

Depending on the trading assets (tools) the exchanges can be divided into:

  • Stock Exchange

Represented by an organized market that allows its members through financial tools to organize trading on securities allowed in the trading system along with execution of transactions in accordance with established rules and procedures.

  • Currency Exchange

It was established in 1971 when after Bretton Woods international trading moved from the fixed rate of currencies to the creeping ones. Trading is performed through currency pairs.

  • Commodity Exchange

Represented by agricultural products and energy carriers as well as other types of mass consumption goods. Commodity exchanges hold special place in international trading relations. The market price for goods is generated through them.

  • Cryptocurrency

Development of digital money in the modern world has created a great demand for the growth of cryptocurrency market. Through the electronic trading platform, any person is given the opportunity to buy and sell various cryptocurrencies and thus find the financial benefits.

Forex – Online Trading

Forex is an interbank, external exchange market that was formed in 1971 when international trading, after Bretton Woods, moved from the fixed rate of currencies to the creeping ones. The main principle of Forex (FX) is the exchange of one currency by another, free, fixed rate, and the rate of one currency depending on the other is easily defined based on demand and delivery.

The currency market consists of two main components: the stock exchange trading market and the external currency exchange market, which is actually the intermediary and interbank. That is exactly the volume of the main operations performed on Forex.

This market exceeds all the rest by volume. The daily working volume of Forex is estimated at 8-10 trillion dollars a day.

Forex is not a traditional market. It does not have a specific location. By means of online platforms trading can be performed in the world financial markets. With the help of the “MetaTrade 4” trading platform operations can be carried out every second from Monday till Friday inclusive, buy or sell various luxury products (gold, silver, oil, currency pairs, etc.).

Nearly 95% of market participants have moved to online trading because it has become a more convenient and comfortable way than the previous trading methods.

The main participants of the forex market:

  • Central banks
  • Commercial banks
  • Investment companies
  • Dealing centers
  • Broker companies
  • Individuals