Online trading exchanges and trading hubs

Exchanges online and trading hubs
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Online trading exchanges and trading hubs

Online trading exchanges, also known as trading hubs, are websites where online buyers and sellers trade goods and services online.

Online exchanges vary according to the size and number of companies using them and the type of commodity traded. There are already positive signs for exchanges in markets as diverse as energy, textiles and logistics.

Like online auctions, trading exchange allow participants to trade straightforwardly with a wide variety of buyers and sellers. Two of the biggest components driving the growth of exchanges are that large businesses can use them to reduce stock holdings while small businesses can bid collectively to earn volume discounts or to jointly deliver a large contract.
Types of online exchanges

There are different types of trading exchanges, each catering for a specific aspect of trading:

* request for quotation – an invitation to suppliers to provide a quote for a specific product or service
* request for bid – an invitation to buyers to bid for a specific product or service that you are able to provide
* commodity exchange – an ongoing process where the price of a standardised commodity such as energy or telecoms bandwidth continuously changes as a result of changes in supply and demand