Margin trading and the types of exchanges

Margin trading and the types of exchangesKnow that there are a lot of goods are bought and sold among the people, institutions and countries, of these goods: stocks, bonds, commodities and currencies.And know that each commodity market where he will meet your interested in this item and share sale and purchase, and where the price of the commodity is determined on the basis of the law of supply and demand, supply and demand.

Valslah which increases the demand on the supply price rises, and commodity supply, which increases the demand for low price.This is called the markets: stock markets

And stock exchanges exist in all countries of the world, and each stock exchange and its field of specialization.The thing that concerns us to know that the stock market comes of two types:

Exchanges of direct exchangeExchange


Stock exchanges across the networksOver the counter (OTC)


What is the difference between the two types?

The difference is that stock exchanges are the direct exchange with a central location to be specified for those who want to deal it to go to him to sell or buy, or through the presence of representative of the buying and selling in his name.

Such as the New York Stock Exchange, a place located in New York City, which is where the sale and purchase of shares of U.S. companies.Like the London Stock Exchange, a place located in the City of London which is where the sale and purchase of shares of British companies.Like the Kuwait Stock Exchange, a place located in Kuwait City, which is where the sale and purchase of shares of Kuwaiti companies.Where traders meet - or their representatives - face to face and deal with each other directly.The exchanges that cross-communication networks are markets where buying and selling goods without a central location specific, but are buying and selling between businesses, banks and individuals through communication networks and computer.

This means that traders do not have to go to a specific place or to face each other, but are traded through the exchange of offers buying and selling using the telephone and computer networks and the Internet.

Currency Exchange is one of the stock which is based on deal across networks.