Why do exchanges have a buy/sell column in their trade history?

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Yes, if someone buys at a particular price, someone else must sell at that price. But they didn't place their orders at the same time. The buy/sell indicates the direction of the filled order. This is needed to make sense of the price.

Imagine an apple exchange where no trades are occurring. Then someone walks in and buys or sells an apple for $1. Do you care whether the person who walked in bought or sold? Well, yes. If the person bought an apple for $1, that means before they walked in, someone was willing to sell an apple for $1 but nobody would buy it. If that person sold an apple for $1, that means before they walked in, someone was willing to buy an apple for $1 but nobody would sell it. So without knowing the direction of the transaction, you can't tell what the price is telling you about the state of the market prior to that transaction.

This is very important in a market that isn't very liquid. For example, say the cheapest anyone is willing to sell a Bitcoin...

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Table Of Contents


Introduction

In the middle of 2011, the MetaTrader 5 trading platform was certified for the Russian stock exchange "Russian Trading System" (RTS), which has been combined with the Moscow International Currency Exchange (MICEX) into a single Moscow Exchange. Undoubtedly, this is a landmark event. It has opened up an opportunity for many traders to try themselves in stock trading, while still using the familiar and reliable MetaTrader terminal. Another important event happened recently: MetaTrader 5 has become available in Moscow Exchange's FX Market enabling real currency spot trading on a transparent exchange platform.

Despite these remarkable events, exchange trading is considered something mysterious, especially by forex traders. This article is aimed at dispelling the mystery. It is the result of a great effort at creating HedgeTerminal - a special system inside MetaTrader 5, which allows traders to comfortably perform their trading...

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The issue of high-frequency traders who cancel a lot of their orders seems to have been in the news a bit recently, so let's kind of reason it out from first principles.

There are different kinds of "high-frequency traders," but many of them are in the business of what is called "electronic market making." A market maker continually offers to buy or sell stock, whichever you want. So the market maker places an order on the stock exchange to buy 100 shares of XYZ stock for $9.99, and places another order to sell 100 shares of XYZ for $10.01, and you can come to the stock exchange and immediately sell to the market maker for $9.99 or buy from it for $10.01. If you sell for $9.99, and then someone else comes along and buys for $10.01, the market maker collects $0.02 just for sitting in between the two of you for a little while. Whether the market maker is necessary, or worth the two cents, is a hotly and boringly debated question, though it should be said...

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Summary: The financial world is dominated by the role of the stock exchange in a national economy. National and global markets influence politics, social policy and the lives of millions - often directly. Therefore, this section seeks to explore the role of markets in our lives and of other factors in stock markets.

A stock exchange is an organised market for buying and selling financial instruments known as securities, which usually includes equities, bonds, options, and futures. For the average man on the street, just equities and bonds will be of interest.

Most of the options and futures trades carried out will be on behalf of big businesses or fund management groups, both trying to lower or offset risks.

Where is the money?

At the very core, a financial market is all about raising capital. For this reason, they are known as 'capital markets'. Entrepreneurs growing a business might need new funds to help them grow and they wish to find borrowers or...

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Commodity exchanges are trading organizations that engage in transactions that involve the buying and selling of futures and options related to the commodities market. Generally, the commodity exchange will maintain a physical location where trading activity takes place. Increasingly, a commodity exchange will also provide online access to trading activity, including the ability to trade on the exchange by electronic means.

Perhaps one of the most well known commodity exchanges in the world today is Commodity Exchange, Inc. located in the Manhattan area of New York City. Known simply as COMEX, the particular commodity exchange has been around for decades and has a solid reputation throughout the investment community. This exchange is particularly well known for metal futures, although COMEX does engage in other commodity options trading.

The basic structure of any commodity exchange will involve creating a platform of standards, rules, and processes that will govern...

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X. Writing Practice. Write a short summary about money markets. Use the opening phrases from Appendix1.

UNIT 3. MONEY MARKETS

DISCUSSIONDiscuss in what way politics can affect market fluctuations in your country.

READING EXCHANGES

An exchange is an organized meeting of persons in a permanent appointed place with the aim of buying and selling. The trading there is governed by certain rules and is limited to members of the exchange, who are known as brokers. There are two main types of exchanges: the Com modity Exchange and the Stock Exchange.

Commodity Exchange(or produce exchange) is a market in which com modities (raw materials and some manufactured goods) are bought and sold for immediate or future delivery. Commodity markets/exchanges have been established in important cities of Great Britain, the USA and other countries for trading in cotton, wool, timber, wheat, hides and skins and other such commodities. It is not necessary for the...

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Trade is the buying and selling of goods and services. The products that are exchanged are things that people grow or make, like food to eat, machines to work with or clothes to wear. Services are things that people do for others, like working in bank, caring for old people or teaching pupils.

Why do we trade?

Trade happens because people need or want things that they don't have. We also trade for work that we cannot do ourselves. Trade between countries happens for the same reason. Some countries, for example, have natural resources, like coal, oil or wood which other countries might want to buy. They try to sell the goods, products or services that they have too much of to other countries. They earn money from these sales and then can buy the things that they themselves need and cannot produce on their own.

Both producers and consumers profit from international trade. If countries can produce goods more cheaply than others because they...

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If the thought of investing in the stock market scares you, you aren't alone. False promises and highly public stories of investors striking it rich or losing everything skew perceptions of the reality of the average investor. By understanding a little more about the stock market – and how the stock market works – you'll likely find it isn't as scary as you may think and that it's a viable investment.

What Is a Stock or Share?

When you buy a stock, you're buying a piece of the company. When a company needs to raise money, it issues shares. This is done through an initial public offering (IPO), in which the price of shares is set based how much the company is estimated to be worth, and how many shares are being issued. The company gets to keep the money raised to grow its business, while the shares (also called stocks) continue to trade on an exchange, such as the New York Stock Exchange (NYSE).

Traders and investors continue to buy and sell the stock of the...

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The Foreign Exchange Markets, where people buy and sell foreign currency, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, 30 times larger than the combined volume of all US equity markets.

Currencies are traded in pairs, for example Euro/US Dollar or US Dollar/Japanese Yen.

Foreign money held by a government to support its own currency. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign into their domestic currency. The other 95% is trading for profit, or speculation.

For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors". Today, more than 85% of all daily transactions involves trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian...

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The foreign exchange market is merely a part of the money market in the financial centers is a place where foreign moneys are bought and sold. The buyers and sellers of claims on fore' money and the intermediaries together constitute a foreign exchange market. It is not restricted to any given country or a geographical area.

Thus, the foreign exchange market is the market for a national currency (foreign money) anywhere in the world, as the financial centers of the world are united in a single market.

There is a wide variety of dealers in the foreign exchange market. The most important amongst them are the banks. Banks dealing in foreign exchange have branches with substantial balances in different countries. Through their branches and correspondents the services of such banks, usually called 'Exchange Banks', are available all over the world.

These banks discount and sell foreign bills of exchange, issue bank drafts, effect telegraphic transfers and other...

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Read this article to learn about the trading procedure on a Stock Exchange!

Before selling the securities through stock exchange, the companies have to get their securities listed in the stock exchange. The name of the company is included in listed securities only when stock exchange authorities are satisfied with the financial soundness and other aspects of the company.

Image Courtesy : listdose.com/wp-content/uploads/2013/06/Exchange.jpg

Previously the buying and selling of securities was done in trading floor of stock exchange; today it is executed through computer and it involves the following steps:

Trading Procedure on a Stock Exchange:

The Trading procedure involves the following steps:

1. Selection of a broker:

The buying and selling of securities can only be done through SEBI registered brokers who are members of the Stock Exchange. The broker can be an individual, partnership firms or corporate bodies. So the first step...

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Call 022-30896680 in case of any queries and our executives will help you fill out the online account opening...

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