Types of financial markets

A financial market is a term loosely used to describe any marketplace where buyers and sellers trade assets such as equities, bonds, currencies, and derivatives. Financial markets are there in nearly every country in the world. Some are very small and some as big as the New York stock exchange where trades of millions of dollars take place every day. Investors have access to a number of financial markets and exchanges and can trade in a vast array of financial products. Let us look at some of the financial markets.

1. Capital markets:  in this market individuals and institutions trade financial securities. This type of market consists of both the primary and secondary markets. Any organization requires capital to finance its operations. To do this a company raises money through stocks and bonds in the company‚Äôs name. Stock markets allow investors to buy and sell shares in publicly traded companies. Bonds are used by companies to finance a variety of projects and activities.

2.Money market: money market is used by the traders as a means for borrowing and lending in the short term.  It is used by a wide array of participants and is usually seen as a safe place to park money. Because they are extremely conservative, they offer lower returns than most other securities.

3.Cash or spot market: in this market, goods are sold for cash and are delivered immediately. The cash market is quite complex and is not suitable for inexperienced traders.

4.Derivatives market: it is called derivatives because the value is derived from its underlying assets. It is also very complex and is not good for speculations by inexperienced traders.

5.Forex market: this is where currencies are traded. It is the largest market in the world and includes all the currencies in the world. There is no marketplace as such for this market and the currency trade is conducted over the counter.

Apart from these markets, there is another market which is getting very popular. Cryptocurrencies are the currencies of the future. They have already given good returns to a number of people. Netflix Revolution is an automated trading platform which allows you to trade in the cryptocurrencies market, but without any risk. This system is programmed in such a way that it trades on your behalf and is totally under your control but at the same time analyzes the options and lets you choose the best one.  It is very precise and helps and guides you every step of the way. You can learn this here now very easily and try it out.