The equity market is a market where investors buy and sell securities providing ownership of a company's shares. The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers and reduce the risks of investing. Stocks can be traded in an organized fashion through exchanges and over-the-counter.
The foreign exchange (also known as "Forex" or "FX") market is an international market where various currency exchange transactions take place. In simple terms, Forex trading is the buying of one currency and the selling of another.
There is no central market place for currency exchange whereas all trades are conducted over-the-counter. The Forex is open 24 hours a day, five days a week.
The most frequently traded currencies are referred to as “Majors” which represent over 85% of daily transactions on Forex trading. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD).
Commodities market consists of the trading of forward contracts or futures contracts; forward contracts are off-exchange contractual agreements to buy/sell any commodity between two entities; futures contracts are market agreements to buy/sell very specific commodities between two entities over a recognized commodities exchange.
The most popular way to monitor futures contracts for the generic commodities market is through an index known as the Commodities Research Bureau (“CRB”) Index - the most widely followed basket of commodities in the world.
Metals one of the mostly tradable metal and as a global currency, Gold is an investment product and with its proven ability to preserve value over time, it has held an allure for thousands of years. Gold possesses a number of desirable physical characteristics and gold investment being safeguard against inflation, useful diversifier in a multi-asset portfolio, effective hedge against crisis situation that have all contributed to making it one of the most valuable commodities in the world. What about oil??
A contract for difference (or CFD) is one of the financial market's fastest growing instrument that allow users to speculate on share price movements, without any physical stock transaction or the need for ownership of the underlying shares.
An arrangement between two parties made in a forward contract whereby differences in settlement are made through cash payments rather than the delivery of physical goods or securities.