What are financial markets?

Financial markets are trading places or facilities for financial instruments such as stocks, currencies, bonds or commodities. Financial markets may have actual exchanges or may only have online platforms, but in both cases there are rules of conduct that traders must follow.

Where have you heard of financial markets?

If you are an investor, you will be familiar with the financial markets, which provide you with the opportunity to buy, sell and check asset prices. The ups and downs of prices in financial markets are often reported in the news.

What you need to know about the financial markets...

Financial markets in terms of size, liquidity and technology adoption vary greatly, but there are some commonalities. The assets they trade are standardized: a dollar, a share of General Electric stock, a barrel of Brent crude oil, all standardized. The diamond exchange is not exclusively a financial market because all diamonds are different.

There are usually trading periods and deadlines for closing deals. Transactions are settled by the market itself or according to its rules. The market with the best reputation will escort every trade and make up for any losses suffered by the counterparty in the event of a trader's default.