Free training course in Forex lesson 2- Types of stock exchanges in the world

In this article we will continue our free training course in Forex and enter deeply in the world of the stock markets by knowing the types of stocks exchanges.

And let us know what mean Bourse or stock exchange

The meaning of the word Bourse:

The origin of the word Stock Exchange due to a person named (Van de Bours) who owned a hotel in Bruges, Belgium, and it is a place for merchants in order to discuss on commercial transactions and the logo of this hotel was a three bags of money.

The stock market or Bourse is the financial market in which traders, brokers, and currency traders meet at specific times of the day to conduct trading securities and commodities, metals and others.

Types of global stock exchanges:

• Stock exchange, as equities, bonds and shares of incorporation.

• The exchange of goods, such as cotton, wheat, iron and copper.

• Exchange of precious metals, such as gold, silver, platinum and diamonds.

• Contracts for commercial transactions of goods are present, such as Petroleum.

• The spot market for foreign currency trading outside the stock markets (Forex)

Here we must know that you will trade on spot Forex because our free training course in Forex is   dedicated to this kind of immediate exchange between foreign currencies.

And several parties participate in the stock market...

The central banks: they are the most influential on the market because they have large cash liquidity.

The largest central banks round the world:

Federal Reserve Bank of American, ECB, Bank of Japan, Swiss national Bank, and The Central Bank of England.

Brokers

The brokers are the mediator between the customer and the market, as well as the mediator between the customer and the bank taxpayer money transactions in cases of trading with Margin, as well as the mediator between the customer each other, and you must choose a broker and it should be controlled legal from its Government to ensure the safety of your money.

And the role of these companies also because they are not buying or selling only through them because they are the ones who transferred Prices shown on the stock exchange from banks to banks or to investors and brokerage firm is a broker and he does not bear any losses as a result of market volatility but works Pay as it from the brokerage only.

• Commercial Banks

They Act as a market maker because they are working to find a market, especially in the currency they are ready to buy and sell at any time.

• Major global companies

Most global companies have their own trading rooms in order to achieve good investment performance.

• Mutual funds and investment portfolios

some small investors or those who do not have sufficient experience, to deal with mutual funds and authorize the Director to manage the accounts of this fund for investment profit margin of the investigator and these funds have the ability to cope with market volatility.

Insurance companies

• Some Insurance companies tend to invest the surplus in the capital markets insurance.

Governmental institutions

They are not considered an active party to some extent in the money market, but sometimes involved, particularly in developing countries, which are some of the operations of export and import monopoly of the public sector.

• Individual investors

Although they do not play an important role in the money market to the small size of their transactions, but it is begun to notice an increase in the number of individual investors after the appearance of the facilities granted to them by some financial institutions, or what is known as the provision of margin trading.

We hope that you get important information in this lesson of free training course in Forex.