Traditionally, transactions in the
barter market were solely carried
out in the form
of exchanging goods. For example, consider a village with 100 households, 500 years ago where people provided
their annual needs from other families without paying any money and in exchange for it,
they placed their own productions at the disposal
of those families; so a comprehensive chain of production
and consumption had been established. However today in modern barter market, by the expansion of the range of products, needs and services
as well as the extent of human societies, possibility of
doing barter transactions between two people or
companies has sharply been decreased and existence of broader
chains of production and consumption among the members of societies has been turned into a necessity. Hence, in order to manage turnover, a
trade note for doing transactions is a prerequisite.
Nowadays all modern barter markets use a trade note for
floating a credit among the market components and forming chains of supply and purchase within a community.