The Moscow Interbank Currency Exchange (MICEX) was founded in 1992. The MICEX quickly became the leading Russian marketplace for trading in currencies and securities. Now the exchange has a different name, but it continues to attract many private investors with the opportunity to make money on the exchange rate differences.
Today the MICEX is already history. In 2011, it merged with another Russian exchange - RTS. The Moscow Exchange was formed, which inherited from the MICEX the importance of the country's most important foreign exchange and stock trading platform.
The former name was partially retained in the full name of the united exchange - “Public Joint Stock Company“Moscow Exchange MICEX-RTS””. The MICEX stock index (micex) kept its old name for some time, now it is called the Moscow Exchange index.
What currencies are traded on the Moscow Exchange
The following currencies are traded on the Moscow Exchange:
- American dollar;
- European currencies: euro, British pound, Swiss franc;
- Asian: Hong Kong dollar, Chinese yuan, Turkish lira;
- money of the CIS countries: Belarusian ruble, Kazakhstani tenge.
All these currencies can be bought and sold for Russian rubles. In addition, the site is exchanging euros for dollars.
The most popular among trading participants are operations on the dollar / ruble and euro / ruble currency pairs. However, the volume of transactions with the Chinese yuan has also been growing lately. Deliverable futures for the dollar / ruble, euro / ruble and yuan / ruble pairs are also being traded. The most popular of them is the dollar / ruble futures.
In addition, stocks and bonds, futures and derivatives, precious metals and other financial instruments are sold and bought on the Moscow Exchange.
How the trade is conducted
From the first years the MICEX developed as a technically "advanced" platform. Back in 1997, the Exchange introduced the Electronic Lot Trading System (SELT). It allowed investors to conduct transactions with currencies through a computer. Thanks to the new system, transactions and settlements began to be carried out much faster, and many operations were automated. Initially, SELT worked in parallel with traditional auctions, but soon became the main one.
On the Moscow Exchange, currencies are traded in a double counter auction mode. Deals are closed automatically. There is a special regime for targeted transactions.
At the same time, all participants in foreign exchange trading have the same opportunities to submit and execute orders. The trading system also allows you to quickly receive data on the progress of transactions. Particular attention is paid to the security of transactions.
Foreign exchange trading on the Moscow Exchange is conducted from Monday to Friday from 10:00 to 23:50 with two clearing sessions. The site is closed on weekends and holidays.
Currencies are traded in two delivery modes: for today (TOD) and for tomorrow (TOM). Different currencies and modes have their own schedule, up-to-date information is published on the exchange website.
Who can trade currencies
Legal entities may act as direct participants in foreign exchange trading on the Moscow Exchange:
- banks;
- financial management companies;
- institutional investors;
- state corporations;
- non-state pension funds (NPF);
- international organizations.
Individuals also participate in foreign exchange trading, but through brokers.
How to become an investor in the foreign exchange market
Individuals cannot bid directly. Nevertheless, any citizen of the Russian Federation can start making money by buying and selling currencies on the Moscow Exchange. To become an investor, you need:
- Choose a brokerage company. The list of professional participants providing services for working on the Moscow Exchange currency market is posted on the website of the trading platform.
- Determine the optimal tariff for yourself and conclude an agreement with a broker.
- Install a trading terminal - special software for full access to trading.
- Deposit money into the account. This can be done through a bank or online service.
- Get started.
It is advisable for novice investors to undergo training in currency trading. You should also learn to work with the terminal. Many brokerage firms offer relevant educational services.
The Moscow Exchange itself also conducts its courses for novice traders. The company also conducts various seminars and master classes where private investors can improve their knowledge.
