Top 10 Online Financial Markets

The foreign exchange, a market which determines different currency values, is the type of exchange of global decentralized trading of different international currencies. This market enables currency conversion, assisting the international investment and trade and even supports the carry trade as well as the value of currency direct speculation from the interest rate differential of two currencies.

Commodity market, a kind of market has its roots in the agricultural products trading, is where the exchange of primary or raw products occurs. These primary commodities, which are sold as well as bought in contracts that are standardized, are traded on the regulated commodities exchanges. There should also be a very wide consensus in the product variations, making it acceptable for different purposes, for a commodity market to be established.

The Government bond, a type of bond that the national government issues, normally promises to pay the periodic payments for interest and the face value of a specific date. The bonds are also debt investments, wherein a certain amount of money is being loaned by an investor to a country or company in a certain time and interest rate.

The high yield bond, also known as speculative-grade bond, non-investment-grade bond or junk bond, is a kind of bond which has a rating below the investment grade. It has a greater risk of other credit events or default but usually has higher payment yields than the better quality bonds, making them attractive to the investors.

An insurance market is responsible for facilitating the redistribution of a variety of risks. Likewise, insurance is a type of risk management that is used primarily to hedge against the possibility of uncertain loss or a contingent. The transaction in this market involves the insured, who assumes a guaranteed small loss by paying the insurer in exchange for the promise of compensating the insured in case of financial loss.

Preferred stock or preferred shares, regarded as a hybrid instrument, is an equity security that has properties with both a debt instrument and equity. It normally has no voting rights but it can carry a certain dividend and have a priority upon liquidation and in payment of dividend over the common stock.

A real estate is defined as the property which consists of a land and its buildings, together with the natural resources like minerals, water and crops. It is a legal term in which the jurisdictions like United Kingdom, United States, Australia, and Canada use. Likewise the real estate market is all about selling, renting or buying land housing or buildings.

A spot market, also called as the cash market, is a public financial market where the commodities or financial instruments are being traded for an immediate delivery. This kind of market can be an exchange, an organized market or over the counter. The spot market for some instruments primarily exists on the internet.