Markets

Online trading can be done in many ways through various markets. However, they all have the same concept of buying and selling assets through a brokerage and their online trading platform. The following financial instruments can all be traded online through various brokerages from all over the world;

Are you looking for online brokers with markets in Cryptocurrencies or Forex? Follow the link and get the list of brokers with Cryptocurrencies or Forex markets.

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Binary Options, Bonds, CFDs, Commodities, Cryptocurrencies, Energies, Equities, ETFs, Forex, Futures, Indices, IPOs, Options, Shares, Spread Betting, Stocks

What are Financial Markets?

We know investors have a wide array of financial markets to choose from when trading online, but what exactly is a financial market anyway?

A financial market is the broad term used to describe a marketplace in which people trade financial securities, and commodities. In a more general sense, it’s where traders buy and sell assets. Financial markets are known for having defined rules and regulations pertaining to each type of market. For instance, financial markets always have transparent pricing, basic regulations on trading, cost and fees, and prices determined by various market forces.

The markets are used for the purposes of many. Companies use the markets to raise cash for their businesses while reducing risks. Investors use the markets to make money. Basically, the markets make the movement of money between businesses and people simple and transparent. They provide opportunity and prosperity for all parties, while encouraging competition and improvement among businesses.

Types of Markets/Trading Options

Investors have a wide range of markets and trading options to choose from. They all come with their own unique advantages and disadvantages, time frames, and financial requirements. Most importantly, they each have a unique style and method to be practiced when trading.

In the most basic sense, online trading can be split into three distinct categories; short term, medium term, and long term trading. With short term being anywhere from a few seconds to a few weeks, medium term lasting a few weeks to a few months, and long term lasting months or even years.

The category of trading style will depend on which markets you decide to trade in. As said before, each market has their merits, and ultimately depends on the trader to decide which market is best for them.


Common Types OF Markets

While there are many financial markets to trade on these days, the most common markets are as follows;

Capital Markets

This market puts focus on the raising of capital over the long-term (generally over 1 year). The financial instruments involved in this market are known to be apart of two general categories known as equity securities and debt securities.

Foreign Exchange Markets (Forex)

The forex market is the largest and most liquid market in the world, with an average daily trade volume of $5 trillion per day. The market includes the exchange of currencies from all over the world.

Commodity Markets
These markets are purely the trading of primary products such as mined materials; gold, and oil, or agricultural products; wheat, coffee, sugar.

Derivatives Markets
These markets allow the trading in financial instruments such as futures contracts and options which help to control financial risk. Th underlying assets involved include stocks, bonds, commodities, currencies, or mortgages.