Methodical approaches to assessing the use of trading strategies in the commodity exchange market

Abstract

Introduction. Exchange trading is a fairly widespread type of market process. The emergence and development of exchanges are due to changes in the formation of economic processes between participants in market relations. Complications of trade and economic relations have contributed to the formation of various types of exchanges. The purpose of the research is to develop methodological approaches to assessing the implementation of trading strategies in the commodity exchange market. Results. The essence and structure of a trading strategy are determined. The main advantages and disadvantages of using a trading strategy on the stock market are substantiated. The dependence of trading strategies on the accuracy of quan-titative information is proved on the basis of which they are formed. The main types of technical and fundamental trading strategies are described. Trading strategies based on four levels of management (support strategy, reduction strategy, growth strategy) are considered. The essence of business strategy is defined. Trade strategies are described in the context of the pro-posed classification by areas of the agribusiness entity activity. Exchange trade is defined as a component of relations trans-parency in the market of goods and services of the agrarian exchange market. The financial instruments of the stock market are characterized. Peculiarities of derivatives use in the international practice are given. The role of price is substantiated as the main factor influencing the production of goods and products. The analogy of price formation on the stock and free mar-kets is made. The method of determining the factors influencing the movement of the value of agricultural products is sub-stantiated. The necessity of accurate consideration of the main factors influence in the process of the trading strategy for-mation is proved. The importance of understanding the trade goals for the development and implementation of the strategy is emphasized. Conclusions. The important role of trading strategies in the process of exchange trading is substantiated. The es-sence and features of trade strategies formation are defined. It is established that the use of an effective trading strategy helps to increase the validity level of decisions for traders and investors. Key words: trading strategy, methodical approach, stock market, investor, trader, agricultural products, cost.