The scope of the transaction, i.e. ...

The stock exchange allows you to trade a variety of commodities, with securities and other financial instruments currently being traded. Investing in the stock market does not have to be difficult and complicated, as long as you know its mechanisms thoroughly. One of the most important issues affecting the functioning of the stock exchange and the investors themselves are the types of exchanges, which can vary: geographical range, trading volume, market capitalization and transaction range.

Breaking down an exchange by trading range is crucial because it refers to the type of asset that can be traded on a particular exchange. This means that different asset classes are supported by different types of exchanges, and this affects the way they operate, how they operate, and the regulations they are subject to. This is of great importance for investors, who should choose different investment strategies on different exchanges. In addition, knowing the exact scope of transactions of a given exchange allows you to better adjust the method of operation to the specifics of the market and makes it easier to predict changing trends and rates. By type of transaction, exchanges can be divided into:

• commodity exchanges (commodity exchanges);
• stock exchanges;
• service exchanges.

Commodity Exchange

At Webinar Universe , we talk about the fact that the commodity exchange includes trading in raw materials and agricultural products, in particular natural resources, such as crude oil, gold, silver, wheat or sugar. On a commodity exchange, transactions take place by concluding futures, options and spot markets. This allows you to reduce the risk associated with price fluctuations and speculate on future price movements. How exactly does a commodity exchange work?

• Futures – an agreement to make a transaction at a fixed price in the future. This gives the opportunity to hedge against price fluctuations – the investor concludes a contract for the purchase of a good, counting on a price increase, and the other party to sell a certain amount of goods, wanting to protect themselves against a decrease in its value.
• Options – give the right to buy or sell goods at a fixed price before the date specified in the contract. Importantly, options give you the right, but not the obligation, to execute the agreed transaction.
• Spot market – these are transactions that oblige you to deliver goods and pay immediately. The least popular mode of trading on the commodity exchange, but important in direct trading of commodities.

The commodity exchange is a large-scale trade, and bulk commodities are highly standardized in terms of quality. The main objective of the commodity exchange is to improve domestic and international trade, and thus economic development and to create a tool for shaping the economic situation based on demand and supply. Commodity exchanges are additionally divided into corporate (created by the municipal government or an association of merchants) and organized by the state. Each exchange may have its own statute, which defines the rules of its operation, but all of them are subject to national regulations.

Stock Exchange

The stock exchange brings together entrepreneurs who want to raise capital and investors who want to invest money, hoping for profits in the near or distant future. This is the most well-known form of the stock market, which is often identified with the general concept of the stock market. This type is also of interest to most investors. A stock exchange involves trading in stocks, bonds, derivatives, and other securities (e.g., ETFs).

Shares represent ownership of the company, and the investor, after purchasing them, becomes a shareholder and has the right to a part of the company's profits (dividend) and a vote at the general meeting of shareholders. The main purpose of investing in stocks is to generate profits from changes in their value.

Bonds are debt securities. They impose on the issuer the obligation to return the borrowed amount with the agreed interest within a specified period. Bonds are characterized by lower investment risk than shares. Derivatives, i.e. m.in options and futures, allow you to make money on price fluctuations of the underlying instruments without actually owning them. They are mainly used for risk management and speculation on future price movements.

A wide selection of financial instruments allows you to diversify your portfolio and reduce investment risk. The operation of stock exchanges is regulated by national and international regulations and financial supervision, which is a guarantee of security and transparency of transactions. If you want to start investing in the stock market, you need to open an investment account with a brokerage house. More information can be found on our training platform.

Service Exchange

The service exchange is by far the least known, but it also plays a very important role in economic development. This type of exchange involves trading services from the most diverse areas of activity. Some companies present on the stock exchange, e.g. consulting companies, offer activities on a global scale, helping the other party to the contract in development and expansion into new markets. Service exchanges often function as online platforms where bidders and buyers can conclude contracts for the performance of certain services in the future. This exchange concerns, for example:

• financial services – financial advisory, accounting services, asset management;
• consulting services – business consulting, market analysis, development strategies, consulting services;
• technology services – software development, cybersecurity, IT network management.

Contrary to appearances, the services exchange is developing very dynamically, because the modern economy (largely due to globalization and digitization) is increasingly based on services. The main benefits of service exchanges include access to a wide database of specialists and the ability to optimize costs thanks to greater competition and the ability to compare offers, which is exactly what we are talking about at Webinar Universe. Knowing the different types of exchanges allows you to better understand the financial market, which is crucial for managing your assets wisely. Different exchanges offer different investment options, and their principles of operation can differ significantly from each other. The most popular are stock exchanges and commodity exchanges, which provide the widest investment opportunities for both beginners and experienced investors.

A commodity exchange allows you to trade commodities to hedge against price fluctuations or speculate on their future changes, while a stock exchange includes trading in financial instruments, which allows you to build a diversified investment basket, but you can only invest in this type of exchange through a brokerage house.