Listing Requirements For Exchange

Significant returns that you get when you trade forex is by having a leverage. When you are trading forex, you are actually borrowing the first currency from the pair of currencies to buy or sell the seconds currency. The market makes US$ 5 trillion a day, and the liquidity is so deep that the liquidity providers like big banks will allow the investors to trade with a leverage. Trade with leverage means that you simply need to set aside a required margin of your trade size. By doing so the traders will get more exposure and keep your capital investment down. You can click here to see how this software does forex trading.

Exchanges With Respect To Trading

It is also known as an organized market. Exchange can be referred to as a marketplace where you can trade financial instruments, commodities, securities, and derivatives.The fundamental duty of an exchange is to ensure that the trading happens in an orderly manner as well as in a fair way. Along with this, the exchange also has to make sure that for any securities being traded, the distribution of information regarding the price on that exchange is efficient. Exchanges give a platform to the companies and governments as well as other groups to sell securities to the public who wish to do investments.

Understanding Exchange In Detail

As mentioned above exchange is a marketplace. This can be a physical location where the traders meet and carry out business. An exchange can also be an electronic platform as well. The platform can be also referred to as a share exchange or bourse which depends on the geographical location. Exchanges can be located in any part of the world in most of the countries. More prominent places where the exchange is present are New York Stock Exchange, Nasdaq, the London Stock Exchange and the Tokyo Stock Exchange.

What Are Electronic Exchanges

Since the trade market is becoming more and more sophisticated, the trading is being conducted on electronic exchanges. Without the necessity of members to be on a centralized trading floor, the exchanges themselves are able to ensure fair trading. As seen in the year 2016, less than 15% of the overall volume of stocks traded on the United States’ floor of NYSE.

Listing Requirements For Exchange

For any company or group who wishes to offer securities for trading, each exchange has certain listing requirements. Some exchanges are firmer than the others. However, the basic requirements for stock exchanges include:

  • Regular financial reports.
  • Minimum Capital Requirement.
  • Audited earning reports.