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The world's financial markets

Financial markets are marketplaces in which trading of financial securities takes place. These securities include but are not limited to shares, debentures, bonds, and monetary currencies, all of which are tradable financial assets. The world has several financial markets, with some so massive that billions of dollars are traded regularly. In this article, the focus is on 3 major financial markets that are quite popular today: Forex, Stock, and Cryptocurrency markets.


Financial markets are marketplaces in which trading of financial securities takes place. These securities include but are not limited to shares, debentures, bonds, and monetary currencies, all of which are tradable financial assets. The world has several financial markets, with some so massive that billions of dollars are traded regularly. In this article, the focus is on 3 major financial markets that are quite popular today: Forex, Stock, and Cryptocurrency markets.


Simply put, this is the market in which participants can buy, sell, hedge (safeguard) and speculate on the exchange rates between currency pairs (national currencies from two countries traded). It is, therefore, the most liquid market in the world due to cash being the most liquid of assets. It consists of banks, commercial companies, central banks, investment management firms, hedge funds, forex brokers and investors.


Stock markets are those in which companies list shares to be bought and sold by traders and investors. The purpose of stock markets, or otherwise called equities markets, is to raise capital via Initial Public Offerings (IPOs) for these companies that list shares.


Stock markets are those in which companies list shares to be bought and sold by traders and investors. The purpose of stock markets, or otherwise called equities markets, is to raise capital via Initial Public Offerings (IPOs) for these companies that list shares.


In recent times, this market has started to become more prevalent. The Cryptocurrency market deals with the trading of digital currencies (cryptocurrencies or “crypto”), which can be used to buy and sell goods and services. These markets are decentralized (not backed by a central authority such as a government) and run across a network of computers instead. Some of the most prominent are Bitcoin, Dogecoin, and Ethereum, although currently, hundreds of them are available and are traded globally on crypto exchanges. With powerful influencers such as billionaire Elon Musk investing in this market along with new opportunities arising for those who own these assets, this market will continue to grow.


This was just a brief, general overview of these three financial markets, as there is a multitude of intricacies associated with them. Also, while I’ve focused on three, remember that several other financial markets exist worldwide.