An exchange is an organized marketplace where financial instruments such as digital assets, commodities, and securities are traded. Exchanges can operate on real-world facilities or on digital platforms.

One of its main functions is to provide liquidity in a safe and organized trading environment, acting as an intermediary for traders to easily buy and sell their assets while being less vulnerable to financial risks.

Exchanges can be classified according to the type of trades executed. The first one is classic. Classic here means exchange platforms that execute spot trades (immediate or instant settlement).

On the other hand, there are exchanges that provide derivative trading, such as futures. Exchanges can also be classified according to the financial instruments traded: crypto asset exchanges, stock or securities exchanges, commodity exchanges, and foreign exchange (Forex) markets.