Exercise Files
Different types of markets: Stocks, Forex, Cryptocurrency, and others.
Different Types of Markets
Stocks: The stock market is like a bustling marketplace where ownership in companies, in the form of shares or stocks, are bought and sold. When you buy a stock, you're essentially grabbing a piece of the pie of a company's ownership. Companies go public to raise capital, and stock exchanges are the platforms where these transactions take place. The ups and downs? They're influenced by economic news, company earnings, and global events, to name a few.
Forex: Fancy for "foreign exchange." This market is the world's largest financial playground where currencies duke it out. Here, traders speculate on the future price of one currency against another. Think USD/EUR or GBP/JPY. It's a 24-hour market, and factors like geopolitical events, interest rates, and economic data play huge roles in those price fluctuations.
Cryptocurrency: The new kid on the block, cryptocurrencies are digital or virtual currencies that use cryptography for security. The big boss here is Bitcoin, but there are countless others like Ethereum, Ripple, and Litecoin. These currencies operate independently of a central bank, making them immune (well, mostly) to government interference. Prices? They can be as volatile as a pot of hot soup, thanks to factors like regulatory news, market adoption, and technological advancements.
Others: Beyond these three, we have:
Commodity Markets: Where raw or primary products are exchanged, like gold, oil, and wheat.
Bond Markets: The place for debt securities, where entities get capital and investors earn interest.
Derivative Markets: Fancy term for markets dealing in securities derived from other assets. Think futures and options.
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Systematic & Discretionary
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Exercise Files