Education

Financial markets

A financial market is a global marketplace where investors can buy and sell different types of financial assets including securities, composites, currencies and a broad range of derivative contracts. Markets work by providing safe, transparent environment where parties involved in trading may engage in trading operations. Financial markets are to some extent controlled by different regulatory authorities who act as watchdogs tasked with overseeing diverse range of activities taking place on the global marketplace.

Almost every nation on the planet is involved in financial markets one way or another. Some are very small, with only a few participants, while others – like the New York Stock Exchange (NYSE) and the forex markets – trade trillions of dollars daily. In general, there are many types of financial markets which can be classified into separate categories depending on types of financial instruments they deal with and accessibility to public ; some markets, like foreign exchange, are generally open to individual investors. Others, like stock or bond market enact solid entry barriers for those who are uninitiated by setting high capital requirements or forcing trader to go through a range of procedures in order to obtain the necessary license.

In our guide we will cover everything you need to know about main markets, including stock, commodity and foreign exchange .You will learn the main principles on which these markets operate, understand the crucial differences between them and develop a solid understanding of forces which drive the price of main instruments there.