Types of Financial Markets

Financial Market is the main topic of daily business activities. TABLE OF CONTENTS What Are Financial Markets? Understanding Financial Markets Types of Financial Markets Forex Market Cash Market Commodity Market Derivative Market Capital Markets Equity Capital Market (ECM) Bond Market Over-the-Counter Market Cryptocurrencies Market Examples of Financial Markets Financial Markets FAQs What Are Financial Markets? […]

The foreign exchange (forex) market is the largest financial market in the world. TABLE OF CONTENTS What Is the Forex Market? Understanding the Forex Market History of the Forex Market Type of Forex Markets Big Players in the Forex Market Pros and Cons of Forex Trading Forex Market FAQs The Bottom Line What Is the Forex Market? The

Cash markets are also known as spot markets because their transactions are settled “on the spot.” What Is a Cash Market? A cash market is a marketplace in which the commodities or securities purchased are paid for and received at the point of sale. For example, a stock exchange is a cash market because investors receive shares immediately in exchange for

A commodity market is a marketplace for buying, selling, and trading raw materials. TABLE OF CONTENTS What Is a Commodity Market? How Commodity Markets Work History of Commodity Markets Types of Commodity Markets Examples of Commodities Markets Commodity Market Requirements Trading: Commodity Market or Stock Commodity Market FAQs What Is a Commodity Market? A commodity

A derivative is a complex type of financial security that is set between two or more parties. TABLE OF CONTENTS What Is a Derivative? Understanding Derivatives Special Considerations Types of Derivatives Advantages and Disadvantages What Are Derivatives? Examples of Derivatives Main Benefits and Risks What Is a Derivative? The term derivative refers to a type

What Are Capital Markets? Capital markets are where savings and investments are channeled between suppliers—people or institutions with capital to lend or invest—and those in need. Suppliers typically include banks and investors while those who seek capital are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock

The equity capital market (ECM) is broader than just the stock market. TABLE OF CONTENTS What Is the ECM? Understanding ECMs Raising Capital in Equity Markets Equity Capital FAQs What Is the Equity Capital Market (ECM)? The equity capital market (ECM) refers to the arena where financial institutions help companies raise equity capital and where

TABLE OF CONTENTS What Is the Bond Market? Understanding Bond Markets History of Bond Markets Types of Bond Markets Bond Indices Bond Market vs. Stock Market Pros and Cons of the Bond Market Bond Market FAQs What Is the Bond Market? The bond market—often called the debt market, fixed-income market, or credit market—is the collective name

What Is an Over-the-Counter Market? An over-the-counter (OTC) market is a decentralized market in which market participants trade stocks, commodities, currencies, or other instruments directly between two parties and without a central exchange or broker. Over-the-counter markets do not have physical locations; instead, trading is conducted electronically. This is very different from an auction market system.

What Is Cryptocurrency? A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority,