Following are the types of financial market: (i) Money Market: Deals with short-term financial instruments (maturity less than one year), such as Treasury bills, commercial papers, and certificates of deposit. It helps in meeting short-term liquidity needs.(ii) Stock Market: Stock Market refers to a financial market where publicly traded companies issue and trade shares. This marketplace allows buyers and sellers to trade ownership in companies. When companies issue shares, they basically sell ownership to investors who can trade these shares on the stock market. The price is predetermined on the basis of supply and demand of buyers and sellers. (iii) Bond market: Also known as debt market, bond market is a financial market where bonds are both issued and traded. It is a debt security where an investor loans money to the government or any corporation in lieu of an interest payment. Here the principal is returned at a future date. The government and other entities issue bonds to raise money. Bond issuers need to pay interest to bondholders mostly on a semi-annual basis. (iv) Foreign Exchange Market: Also known as the Forex or FX market, this financial market facilitates the trading of currencies. It is one of the most liquid financial markets in the world, operating 24 hours a day, five days a week. Forex trading occurs across major financial centers, including New York, London, Tokyo, and Sydney, ensuring continuous global participation and high liquidity.(v) Commodity markets: Commodity markets are the trading markets for raw materials and primary products. Through this market, the exchange of these goods between producers, traders, and end-users is facilitated. Factors including weather patterns, geographical events, economic growth as well as supply and demand influence the prices in this market. (vi) Derivative Market: The derivative market is a financial market where investors trade financial instruments whose value is derived from an underlying asset. These instruments include futures contracts, options contracts, and swaps. The underlying asset can be a stock, commodity, currency, or index. Derivatives help investors manage risk by hedging against price fluctuations in the underlying asset or speculating on future price movements. Additionally, options provide opportunities for investors to profit from potential price increases or decreases in the underlying asset.(vii) Futures Market: Futures market is a type of financial market where investors can trade Futures contracts. These are the agreements for buying and selling underlying assets such as commodities, currencies, or financial instruments, at a specified price and time in the future. Futures markets are highly regulated and operate through centralized exchanges, such as the Chicago Mercantile Exchange and the (viii) Intercontinental Exchange: These exchanges provide a platform for buyers and sellers to trade futures contracts, ensuring transparency and efficiency in the trading process. By trading futures contracts, investors can manage exposure to price movements in the underlying asset, as well as take advantage of potential price changes in the future.

The Foreign Exchange Market (Forex or FX Market) is a global decentralized market where currencies are bought and sold. It facilitates international trade, investment, and financial transactions by enabling currency conversion. The market operates 24 hours a day across different time zones, with major financial centers including London, New York, Tokyo, and Sydney. Participants in the forex market include central banks, commercial banks, corporations, hedge funds, and individual traders. The exchange rates in this market fluctuate based on supply and demand, economic indicators, geopolitical events, and market speculation. The foreign exchange market plays a crucial role in maintaining liquidity and stability in the global economy.