Different Types Of Markets In The Financial World

Bryan Jackson August 29, 2017 Comments Off on Different Types Of Markets In The Financial World
Different Types Of Markets In The Financial World

The trading market is a large market that spans globally. This is a place where buyers and sellers participate in the trading of assets. These includes equities, currencies, bonds and derivatives. All things considered, there are fundamental rules and regulations to control the financial market and to keep it going. Its success is based on the;

  • Transparency in pricing
  • Regulations in trading, costs and fees
  • Market forces to determine the correct pricing of securities

The market is not limited to only one region thus the need for proper regulations. The investors are given access to this unlimited platform and can conduct their business according to their wishes. So there are a number of markets that you can choose to invest in depending on your interests.

Capital markets

This market involves the trading of financial securities. It could be either an individual, organization or institution. It’s also open to both the private and public sectors as most organizations and institutions often prefer to sell their securities to raise funds. In the capital market there is the stock and bond markets.

Forex and the interbank market

The forex market is where trading of currencies occurs while the interbank market is where trading of currencies among banks and financial institutions occurs. It is also the most liquid market in the world and to understand about this market you need to have access to financial market technology news platform. The market is decentralized and most trades in the forex market are over the counter.

Money market

This market involves trading of financial instruments that have high liquidity and also short maturities. It is used for the purpose of borrowing and lending on a short term basis. It consists of certificates of deposits, commercial papers, municipal notes among others.

 

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