What are the distinct segments of financial marketplace?

Commonly market is a place where buyer and seller meet for the exchange of different goods and services. Financial market is a place where traders meet for the exchange of different financial instruments like commercial bills, shares, bonds, treasury bills for short and long term. Such market plays really an important role in countries with developing economies. Broadly this market is classified in two types: Capital market and money market. It comprises of other sub markets as well. Traders use advisory services like mcx tips to earn more profitable returns from the market.

Following are the different segments of financial market:

1) Capital market

It is the market where long term funds are traded. Both individuals and institutions trade in financial securities here. Different organizations belonging to public and private sectors also sell their securities in secondary market to raise funds. Thus this market consists of primary and secondary market both. Capital market doesn't deal in goods and it's more concerned with rising of fund. Two major participants here are borrowers: those who demand funds and lender: those who provide fund.  You can usually tread in these markets through stock broking from like grovalue.in. These firms now a days also provide trading facility on your finger tips, such as trading through mobile app . You can now directly trade real time as the firm will back you with stock market trends and reports with their unique products like Market selfie. These reports can be received on daily basis.

2) Market

Short term funds are traded in money market. Participants here look for borrowing and lending for a short period of time which is usually overnight or some days. It’s a segment market where financial instruments which are highly liquid and have short term maturities are traded. Short term money requirements of the borrowers can be easily met with funds offered by money market.

3) Commodity markets

Commodity market is a market where buyers and sellers meet for the exchange of different commodities. Major components of commodity market are agricultural commodities, oils and gas. These commodities are traded over two popular exchange of this market known as mcx and ncdex. Having commodities as a part of portfolio along with stocks helps in diversifying risk of overall portfolio.

4) Derivative market

This market facilitates trading in futures and options contracts. It’s named so because value here is derived from the underlying assets. Along with traders, speculators also exist here. The main reason trader prefers to trade in this market is to hedge against future price risk. Every derivative contract has its own specifications which are to be fulfilled by its holders.

5) Foreign exchange market

This market is also known as for ex market or currency market. This is the world's largest and most liquid market. Traders are attracted to trade here because they can earn some really good returns which is comparatively higher then returns offered by other market. Also trading in currency pairs can be done at any time of the day as it is open 24 hours a day. Major participants of this market are central banks, financial institutions, institutional investors and currency speculators.

So these are main segments of financial market in which traders and investors can trade to earn good returns. Always gain sufficient knowledge about segment you prefer to trade and avoid trading in that segment about which you do not know anything. Financial advisory services like mcx trading tips, commodity market news and tips, trading tips can be used as well to improve earnings from market as financial advisers with excellent market knowledge provide these recommendations.

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grovalue We are giving information about equity markets, Joined: August 23rd, 2017