Defining Market and its Purpose

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Market is commonly known to people as a place where the seller and buyer would make transactions. Historically, there have been researches that the first markets were rural affairs, service to landlords and finally the most common form of market was international trade. Right after the advent of international trade, the market have evolved into a much modernized form. Today, we already see retail outlets where the people who are involved in a trade can personally meet. Technology also played a great role in the evolution of markets through the creation of virtual markets where people can have their orders being executed via the computer. In fact, the market for CFD trading falls under the online market or exchanges category.

Common Modernized Market Platforms

Black Market

This type of platform poses several threats on legality issues because of its nature. By definition, black markets are physical or computer assisted markets where people can trade and perform prohibited actions without being recorded and paying dues to the government.

Auction Market

When we say auction, we definitely have bidders who would compete to top each other’s offer in order to pay the price of an item. Obviously, the bidder with the highest offer will surely bring the “bacon” home.

Financial Market

This type of market refers to the platform where

securities, currencies, bonds, and CFD trading is performed.

Financial Market Platforms

1.Bond Markets

This is a financial market where traders are given the opportunity to issue new debt or primary market and sell debt securities or secondary market. With its name alone, traders use bonds and others as a trading instrument.

2. Stock Markets

A stock market, equity market or share market is a place where traders buy or sell shares which gives them ownership claims on a particular venture. These ventures may either be public or private securities that are encoded on a public stock exchange then sold via equity crowdfunding platforms

3. Money Market

The money market means trading in very short-term debt investments. When it comes to wholesalers, such a market involves huge amounts of transactions both from the platform and traders.On a much smaller scale, money market mutual funds are purchased by individual investors and accounts for this market are usually intended for bank clients.

4. Derivatives Market

This is a market for CFDs  such as futures contracts or options, which are derived from other forms of assets. Market of this type is categorized into two. We have a market for exchange-traded derivatives and a market over-the-counter derivatives.

3 Functions of Financial Markets

1.Information Dissemination

Various financial markets offer pieces of information to traders for free. These pieces of information may be in the form of written articles for trading tutorials or charts and graphs for statistical analysis.

 2.Industry Linkages

Financial markets help investors link their savings accounts into funds requiring companies in order to mobilize their accounts and make them productive.

3. Trading Aid

In order to save time, effort and money in finding other parties whom you could trade with, the financial market is an avenue where you can easily find a probable trading partner for the performance of your transaction.

Conclusion:

The Market itself is a vast topic to study and research. With the ample lecture that we have given you, we can obviously note that markets serve as a way to virtually and physically connect with traders who satisfy our personal needs and economic needs of a country.

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