A marketplace where securities, options, futures, or commodities are traded. The primary functions of an exchange are to ensure fair and orderly trading, and distribute price information for any securities trading on the exchange.
An exchange can be a physical location or an electronic platform. Increasingly, trading is done on electronic exchanges as markets have become more advanced and the exchanges are able to ensure fair trading without requiring members to be on the same trading floor.
There are many exchanges around the world, such as the New York Stock Exchange, Nasdaq, CME, the London Stock Exchange and the Tokyo Stock Exchange. For more information on exchanges, see our Exchanges Around the World pages.