Zoho Bookings & SalesIQ Alignment

Disclaimer

The content on this website is for educational purposes only and does not constitute financial, investment, legal, or professional advice.

Neither FinE, nor associated institutions, including NSE, BSE, MCX, and NCDEX, assume any responsibility for investment decisions made based on this information.

Please consult a qualified financial professional before making investment decisions.

Back

Exchange

Meaning: 

Exchange refers to giving something and receiving something in return. In finance, it describes an organized marketplace where financial instruments such as shares,
commodities, currencies, and derivatives are bought and sold. Examples include stock exchanges like NSE and BSE, commodity exchanges like MCX, and currency exchanges in the Forex market.

Example:

For instance, if you buy gold on the MCX, you are participating in a commodity exchange.

How to understand Exchange:

Exchanges ensure transparent pricing based on supply and demand, helping buyers and sellers make informed decisions.
They support economic growth by allowing companies to raise capital through the sale of shares. 
 

Importance of Exchange:   

Exchanges protect investors through established rules and surveillance, making trading safer.
They enable global trade by facilitating currency exchanges for international transactions.