Trading & Exchanges

Is the branch of financial economics that investigates trading and the organization of markets

Includes, common stocks, preferred stocks, bonds, covertible bonds, warrants, options, futures contracts, forward contracts, foreign exchange contracts, swaps, reinsurance contracts, commodities, pollution credits, water rights, and betting contracts.

Is the place where traders gather to trade instruments. Maybe a physical trading floor like the New York Stock Exchange; or an electronic system in which traders can easily communicate with each other like Nasdaq, the Euronext, the Hong Kong Futures Exchange.

Agents who arrange trades for their clients. They help their clients find traders who are willing to trade with them. They profit by charging commissions.

are traders who trade to profit from information they have about future prices. Well-informed speculators can predict futures prices better than other traders can. They then choose to buy or sell based upon which side they expect will be profitable.

Traders who know more about values and traders who know more about what other traders intend to do have a great advantage over those who do not