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Exchange

Meaning: 

Exchange means giving something and receiving something in return. In finance, an exchange is an organized marketplace where financial instruments like shares, commodities, currencies, and derivatives are bought and sold. In simple terms, an exchange is
a regulated platform that connects buyers and sellers.


Example:

When you buy a share of a company on the stock market, you are using an exchange like the NSE or BSE.


How to understand Exchange:

Exchanges make it easy to buy and sell things like stocks and commodities.
They help ensure fair prices based on how much people want to buy or sell.

Importance of Exchange:   

Exchanges provide liquidity, meaning you can quickly buy or sell your investments.
They protect investors with rules and monitoring to ensure fair trading.



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