Exchange
An exchange is an organised marketplace where instruments trade under established rules. It typically defines trading procedures and admission requirements, while clearing and settlement may involve separate organisations. Exchanges can use order books, auctions, or other trading methods.
In an illustrative exchange trade, compatible buy and sell orders match under the venue's rules. The completed trade then enters the relevant clearing and settlement processes.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure