The concept of financial markets :

Financial markets are the markets in which securities are traded at the local and global levels. Investors or traders buy and sell these securities to reap potential profits, and it can be said that any market in which sellers and buyers meet to buy assets of a financial nature can be considered among the financial markets, and over the next few lines we will learn about their types in detail.

Types of financial markets:

First: the capital market

The capital market is the first and most famous type among the types of financial markets, and it is known as the stock market, as this type includes the stock market and bonds of all different types, and these markets are often local such as the New York Stock Exchange, the London Stock Exchange, the Tokyo Stock Exchange, or stock exchanges. Famous Arab stock exchanges such as the Saudi, Egyptian and Emirati stock exchanges.

Here, the trader buys shares in multiple companies and his goal is to profit from the annual dividends of the shares in addition to increasing the market price of the share, which he can buy through the designated stock exchange, or he can buy bonds with high interest and benefit from the interest or the increase in its market value.

Second: The commodity market

We can consider the commodity market within the financial markets when the purpose of purchasing these commodities turns to the purpose of profit or hedging in times of crises and not to benefit from the commodity itself. Here we can consider the commodity markets that have high global demand within the financial markets, such as: gold and oil.

Commodity markets can be divided into more than one type, including energy markets (such as oil and natural gas), metal markets (such as gold, silver, platinum, and palladium), and agricultural crop markets (such as cotton and wheat).

Third: Forex market

Forex or the foreign exchange market can be defined as a network of buyers and sellers who exchange currencies between themselves at an agreed upon price. This is how individuals, companies and central banks convert one currency into another - if you've ever traveled abroad, you've probably made a Forex transaction.

Currencies can be traded in the pairs system, which is similar to the barter system, which is that you buy a currency from another person in exchange for selling another currency that you have. The Forex market includes major central and commercial banks, investment and hedge funds, large financial institutions, major factories, traders, and more. Individuals.

Fourth: Cryptocurrency market

Cryptocurrencies are commonly referred to as crypto because they use cryptography, making them invulnerable to counterfeiting or double spending. This makes crypto currencies free from manipulation or government intervention. Cryptocurrencies are fungible, meaning that the value of the digital currency remains the same when it is bought, sold or traded.