What are financial markets?
Financial markets are systems where people, companies, banks, and governments buy and sell financial assets.
These markets help move money between participants and allow businesses, institutions, and individuals to manage risk or seek opportunities.
- Currencies
- Stocks
- Commodities
- Bonds
- Indices
- Cryptocurrencies
Major market participants
Financial markets include many different participants. Each participant may have a different goal and trading timeframe.
- Central banks
- Commercial banks
- Investment funds
- Corporations
- Retail traders
- Governments
Why markets move
Prices change because buyers and sellers continuously react to new information.
Economic data, interest rates, political events, market sentiment, and supply and demand can all influence prices.
Learning reminder
This lesson is for educational purposes. Always understand the risks before using real money in financial markets.