FINANCIAL MARKETS
First, what is the financial market?
Financial markets are those in which securities are traded, that is, traders buy
and sell those securities with the aim of making a profit while trying to limit
risks.
How can financial markets be defined?
Financial markets are essentially no different from other markets, where goods
and products are bought and sold.
Types of financial markets:
Types of Financial Markets Examples of instruments that are
traded in the markets
Forex forex market
Stock market Actions
Derivatives CFDs
Raw materials Gold, silver, oil
Money markets short term debt
Cryptocurrency market Bitcoin
Mortgage markets long term loans
Insurance markets Premium risk transfer
How do financial markets work?
Financial markets in general, each financial market has its own characteristics. How
are international financial markets classified? Let's see it:
FOREX: Is a type of financial market that is popular with traders looking for short to
medium term trading opportunities.
STOCK MARKET: It is a mechanism in which citizens and companies come together
to invest in securities that eventually produce a profit or to attract financial
resources from those who have it available.
DERIVATIVES: Derivatives are securities that are tied to an underlying asset and are
sometimes used as a hedge against price changes.
RAW MATERIALS: It includes hard commodities such as gold, oil and soft
commodities such as agricultural and livestock products.
MONEY MARKETS: it focuses on very short-term debt, and involves local banks and
central banks. Banks lend to each other for short-term liquidity purposes. The
central bank often acts as the lender of last resort.
CYRPTOCURRENCY MARKETS: Blockchain technology and its mining system caused
increased interest in the financial market.
MORTGAGE MAKETS: they revolve around long-term loans that are provided for
the purchase of property. These loans can be traded in secondary mortgage
markets.
INSURANCE MARKETS: Insurance markets involve the insurer and the insured,
where risk is transferred for a premium. Insurance companies have significant cash
reserves that they invest in stock, bond, and derivative markets.
