Definitions – What is an exchange?

Exchanges can be found all over the world. Almost every country has its own stock exchange, an organized market with similar tasks. As a rule, securities or currencies, but also goods such as metals and raw materials, are Forex trading on stock exchanges. How expensive the different commodities are is determined by supply and demand. To do this, brokers determine the prices at which market participants are willing to buy or sell.

What is a leading exchange?

The most important exchanges in the world are known as leading exchanges. A leading exchange does not differ in principle from a online trading uk

and also has the same tasks as the other exchanges, but the development of prices on a leading exchange can have global effects. Since the price development on such an exchange directs the development on other exchanges in one direction, the term “ leading exchange ” is obvious.

The influence of leading exchanges

The most important stock exchange in the world is the New York Stock Exchange (NYSE) , which is why it is considered THE leading global exchange . The development on Wall Street and with it the development of the Dow Jones has a considerable influence on the global financial world. So if share prices fall in the US, there is a high probability that prices will also fall on the online trading in Asia, Europe or South America.

The sheer size, especially in terms of trading volume, gives the NYSE its influence. The following facts play a key role:

  • The largest companies are generally listed on the stock exchange.
  • The largest companies are internationally positioned and therefore maintain trade relationships all over the world.
  • International market participants are active on the Forex Bonus Exchange.

The global influence becomes apparent here quite logically. Due to the large trading volume and the numerous market participants, also from different countries, the NYSE also has an influence on the capital markets beyond the US American borders.

In addition, negative developments by companies from the USA have negative consequences for their trading partners in other countries. This of course also worsens the situation of these trading partners and investors react accordingly, which influences the performance of exchanges other than the NYSE.

Large and small leading exchanges

The Wall Street exchange is therefore the most important online trading in the world. But there are also other stock exchanges that have less of an impact on the global financial world, but whose developments still have consequences beyond their own national borders. When looking at the leading exchanges, it is still important which region you are referring to. In North America, the New York Stock Exchange mentioned above is also the most important regional exchange and therefore the leading exchange.