A market where securities or commodities are traded in bulk can buy and sell spot and futures. Usually divided into stock exchanges and commodity exchanges. A stock exchange that deals in stocks and corporate bonds is called a stock exchange; Commodity exchanges are called commodity exchanges, trading commodities (such as cotton and wheat).
Provide securities trading places. Because of the existence of this market, both buyers and sellers of securities have centralized trading places, which can transfer and realize their own securities at any time to ensure the continuous circulation of securities.
Form and publish prices. The securities transactions completed in the exchange form the prices of various securities, because the securities transactions are centralized and open. When the transaction is reached through bilateral bidding, the price is generally fair and reasonable in theory. This price is announced to the public in time as an important basis for various related economic activities.
Concentrate all kinds of social funds to participate in investment. With more and more stocks listed on the exchange, the number of transactions is also increasing, which can attract a wide range of funds for stock investment and provide the funds needed for enterprise development.
Guide the rational flow of investment. Exchanges provide convenience for the free flow of funds, and reflect the profitability and development of securities issuing companies through daily market information and listed company information. Make social funds flow to the most needed and favorable direction. In addition, formulate trading rules, maintain trading order, provide trading information, and reduce trading costs.
Generally speaking, exchanges are divided into two categories according to whether they trust users' assets: centralized exchanges and decentralized exchanges. Centralized switching:
1. Exchange will manage users' assets, and users will confirm their identity through their mobile phone number/email address. 2. Ordering and matching are done through centralized servers, and the transaction is not on the chain.
3. It can be traded between currencies of different public chains.
4. Exchanges like "Firecoin, Coin Security, OKCoin, Gate" that we commonly use belong to centralized exchanges. Go to centralized switching:
1. Users keep their own assets and need to trade through blockchain wallets.
2. Complete ordering and matching through smart contracts, and each transaction is traceable in the chain.
3. At present, only the currencies on the same public chain can be traded. Things like "WhaleExchange Whale Ex, Uniswap, IDEX, Newdex" belong to decentralized exchanges.