Trade
Securities
Liquidity
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Stocks are a type of securities that gives stockholders a share of ownership in a company. For example, if a company has 1000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company’s assets and earnings.
There are 2 types of stock: common stock, preferred stock

Common stock gives voting rights to shareholders and their number of votes directly related to the number of shares owned. Stockholders thus have the ability to exercise control over corporate policy and management compared to preferred shareholders. Owners of common stock receive dividends from the company's profit but dividends are typically not guaranteed and could be changed or eliminated. A holder of common shares of a company receives a share of proceeds from a sale of the company’s remaining assets following liquidation of the company pursuant to Article 28 of company law.

Preferred stock comes with constant dividends and no voting rights. Preferred stockholders have a higher claim to asset distribution than common stockholders following liquidation of the
A bond is a fixed income instrument that represents debt issued by companies and governments. By buying a bond, you’re giving the issuer a loan, and they agree to pay you back the face value of the bond on a specific date, and to pay you a periodic interest rate along the way. The most common types of bonds include municipal bonds and corporate bonds. Bond prices are an inversely correlated interest rate: when rates go up, bond prices fall and vice-versa.
A futures contract is a legal agreement to buy or sell a particular commodity asset or security at a predetermined price at a specified time in the future. Futures contracts detail the quantity of the underlying asset and are standardized to facilitate trading on a futures exchange. The futures contract buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Derivative instruments are new to the Mongolian stock markets
Investment fund means funds raised from the public in order to benefit from the advantages of working as a part of a group such as reducing the risk of investment by a significant percentage. Advantages of investment funds include professional investment managers, asset diversification and lower transaction costs. A fund manager oversees the fund and decides which securities it should hold in what quantities and when the securities should be bought or sold. Types of investment funds include private and mutual funds. A mutual fund is a fund with an investment policy that is prescribed by the management company and is managed according to the point of view of the fund manager. Investment through a private fund is made in accordance with the investment policy prescribed by the client in line with their objectives and restrictions.
TYPE OF MARKET
The Ulaanbaatar Securities Exchange conducts trading either quote driven, order driven or hybrid. Also an exchange suggests broader selection of trading opportunities such as margin trading and short selling.
In quote-driven markets at least one market maker participates in a trading system and prices are determined from bid and ask quotations made by market makers. In a quote-driven market, dealers fill orders from their inventory or by matching them with other orders.
The quote-driven markets focus only on the bids and asks of market makers, while the order-driven markets display all of available bids and asks. Order-driven markets provide two basic types of orders: market orders and limit orders.
In a hybrid market all investors and traders are able to watch limit orders. All trading orders match with orders of market makers.
The most common way to buy stocks is to transfer money from your account to a brokerage account, then use that cash to buy stocks. However, this is not the only way. We are suggesting you margin trading.

Margin trading refers to borrowing money from your broker to purchase stocks hence investors buy more stocks than they can afford. Investors pay a certain amount of money upfront to the broker in cash which is called minimum margin. In margin trading an investor can create credit risk if they borrow cash from their broker to buy financial instruments. To cover credit risk, brokers keep securities as collateral and use minimum margin.
Short selling is an investment or trading strategy that speculates on the decline in a stock or other security’s price. Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it to back later for less money.
Market makers provide liquidity to markets and profit from the difference in the bid-ask spread. Brokers who are members of the exchange sign the Market maker agreement contract and thus operate market making operations. Market maker may be of 2 classes:
● Lead market maker
● Liquidity provider
Securities exchange operate market making operation following circumstances occur
● The level of securities’s liquidity below the level that Trading rules are pointed
● The Stock exchange accepts Marker maker agreements based on offers from stock issuers and brokers.
TRADING PROCESS

The buying and selling securities can only be done through brokers who are members of the exchange. Brokers provide investors with research. investment plans and market intelligence.

The most common trading procedure involves the following steps:

Step 1
Choosing a brokerage
If you need a brokerage company, please take a look at list of our members
Step 3
Inquiry
Participate in the Exchange trading contacting brokerages.
TRADING SCHEDULE

Биржийн арилжаа өдөр бүр 9-16 цагийн хооронд явагдах бөгөөд тухайн үнэт цаасны төрөл, онцлогоос хамаарч үнэт цаас тус бүр дээр харилцан адилгүй байж болно.

2021 онд биржийн арилжаа нийт 249 өдөр явагдах бөгөөд нийтээр амрах амралтын өдөр болон баяр ёслолын өдрүүдэд биржийн арилжаа явагдахгүй.

Opening Regular trading Closing
09:00-09:30

09:30-15:30

15:30-16:00
Limit order place, adjust, cancel place, adjust*, cancel Order place, adjust*
Market order place, adjust, cancel place, adjust*, cancel Cancel order, adjust*, cancel
Price limit 7% limit up and down in last transaction 7% limit up and down in last transaction

Trading of Securities exchange is conducted from Monday to Friday each week except Holidays. Market will open at 09:00am and close at 4:00pm, trading hours vary depending on securities type.

Contact us

Mongolian Securities Exchange Commercial Department

 

Phone: +976-7000-0501, +976-7000-0502
Mail: info@ubx.mn