The Financial Market is where people trade different assets based on a system of supply and demand.
In this sense the market is the sum total of all possible buyers and sellers.
Markets are made possible by exchanges and brokers (which can be physical or electronic).
We can distinguish different types of markets based on the major asset classes that can be bought or sold.
- Currencies are traded through brokers on the foreign exchange market also known as Forex.
- Stocks and Indices are traded through stock exchanges.
- Futures are traded through Future exchanges.
- Cryptocurrencies are traded through specialized cryptocurrency exchanges.
- Bonds are traded via an Over-The-Counter market and Contracts for Difference (CFDs) are mainly traded through brokers.
Each of these markets have their own fundamental drivers and many traders trade more than one asset class.
There are intermarket correlations and markets influence each other’s behaviour.
Knowing these correlations helps traders to get the odds on their side.
The most traded currency pairs in the world are called “the Majors” and the EURUSD leads this group as the most traded pair in the world. This pair represents the world two largest economies and has faced most volatility since the inception of the euro in 1999.
Gold price is widely followed in financial markets around the world. Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a fiat currency system in which paper money doesn’t have an implied backing with any physical form of monetization. AU is the code for Gold on the Periodic table of elements, and the price above is Gold quoted in US Dollars, which is the common yardstick for measuring the value of Gold across the world.
Alphabet Inc. is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives. The Google segment is engaged in advertising, sales of digital content, applications and cloud offerings, and sales of hardware products. The Other Bets segment is engaged in the sales of Internet and television services through Google Fiber, sales of Nest products and services, and licensing and research and development (R&D) services through Verily. It offers Google Assistant, which allows users to type or talk with Google; Google Maps, which helps users navigate to a store, and Google Photos, which helps users store and organize all of their photos.
SPX500 or Standard and Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index was developed with a base level of 10 for the 1941-43 base period.