Financial Markets

Futures Contract

Financial Markets

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The term ‘financial market’ is a broad term that covers all marketplaces where an asset can be traded.

There are a huge amount of financial markets available to traders, within each category of market can be thousands of markets. An example would be the equities market and a single equity or stock within that market. The equities markets relates to the exchange of all equities whilst you may also have an individual market related to just one stock.

Below are some of the most popular financial markets:

  • Forex

    • Major FX pairs
      • EUR/USD
      • GBP/USD
      • USD/JPY
      • USD/CHF
    • Popular cross pairs
      • AUD/USD
      • NZD/USD
      • USD/CAD
      • EUR/GBP
      • AUD/NZD
      • GBP/JPY
      • Plus any cross of these currency pairs
    • Minor FX pairs
      • USD/ZAR
      • USD/RUB
      • USD/CNH
      • USD/SEK
      • EUR/NOK

These are just some examples of Forex markets but as you can imagine with the amount of different currencies in the world, you can pair any two and create an exchange rate. Depending on the broker you are using will determine whether you can trade the pair you want to.

  • Equities

    • Financial sector
      • VV.L (Aviva)
      • BAC (Bank of America)
      • BARC (Barclays)
      • JPM (JPMorgan Chase & Co.)
    • Technology
      • AAPL (Apple)
      • GOOGL (Alphabet Inc Class A)
      • FB (Facebook)
      • AMZN (Amazon)
    • Services
      • AAL (American Airlines)
      • AES (AES Corp)
      • AIR.PA (AIRBUS Group)
      • BABA (Alibaba)
    • Healthcare
      • AZN.L (AstraZeneca)
      • CVS (CVS Health Corp)
      • GSK.L (GlaxoSmithKline)
      • ANTM (Anthem Inc)
    • Basic Materials
    • Conglomerates
    • Consumer Goods
    • Industrial Goods
    • Utilities

These are just a few of the sectors that you can look to invest in when looking at equities. There are thousands if not millions of different companies out there that are public and therefore allow you to invest in the business by buying shares.

  • Indices

    • US Stock Indices
      • Dow Jones Industrial Average
      • S&P 500
      • NASDAQ 100
    • UK Stock Indices
      • FTSE 100
      • FTSE 250
    • European Stock Indices
      • BEL 20 – Belgium
      • CAC 40 – France
      • DAX – Germany
      • AEX – Netherlands
    • Major Asian Stock Indices
      • Nikkei 225 – Japan
      • TOPIX – Japan (Tokyo stock price index)
      • Hang Seng – Hong Kong
    • Major Non-Stock Indices
      • US Dollar Index (USDX)
      • Volatility Index – VIX
      • Goldman Sachs Government Index (GCSI)

Most countries will have their own index of the top companies and there are also numerous other indices that aren’t just related to equities.

  • Fixed Income

    • Money-Market Instruments
      • Eurodollars
      • T-Bills
    • Intermediate to Long-term Instruments
      • Notes
      • Bonds
      • Zero Coupon Bonds
    • Other specialised types of debt instruments
      • Mortgage Backed Securities
      • Convertibles
      • Treasury Inflation-Protected Securities (TIPS)

Fixed income is traded by institutions who have a lot of capital at their disposal and tends to have low volatility.

There are hundreds of cryptocurrencies currently on the market with new ones constantly being added to the market via ICOs (Initial Coin Offerings).

  • ETFs (Exchange Traded Funds)

    • DBA – Powershares DB Agriculture Fund
    • GDX – Gold Miners ETF VanEcj Vectors
    • HYG – Iboxx $ High Yield Corporate Bd Ishares
    • ITOT – iShares Core S&P Total US Stock Market ETF

Exchange traded funds are funds you can invest in who will manage your money for you based around certain types of assets.

  • Commodities

    • Metals
      • Gold
      • Silver
      • Platinum
      • Copper
      • Tin
    • Energy
      • Crude Oil
      • Natural Gas
    • Livestock & Meat
      • Pork Bellies
      • Live Cattle
      • Feeder Cattle
    • Agricultural
      • Corn
      • Soybeans
      • Wheat
      • Rice
      • Coffee
      • Cocoa

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