In international trade various assets involves all possible markets. This process is enabled and actively operate the currency market forex, futures market, commodity and agricultural markets and metals markets and securities. I must say that their financial characteristics of all of them may differ significantly from each other. These features are shown in the stability of the prices submitted by the assets movements, market volatility. And they may differ in their prospects in terms of profit. But there are common points for all markets that are inherent in all of them.
For example, the common market is observed in respect of financial risks, obligations, relationships trading parties and some other points. Such a thing as the stock market, has become a kind of symbol of profit, profitability and prospects. Due to combine many different markets, factors which wants to highlight some circumstances that distinguish the financial markets from the other spheres of activity.
Participants exchange markets
All participants of financial risks can be divided into two categories - hedgers and speculators. Activities and those, and others exposed to certain risks. But some of them tend to protect themselves against possible risks through its consent to the loss of part of the profit, while others seek to acquire as much profit, while not worrying too much about the possible financial risks. Those who do not want to risk their assets and resources.
Accordingly, these risks tend to shift on the shoulders of those who are more interested in profit. Such market participants, eliminates the risk by purchasing a contract, called hedgers. The other side - speculators - ready, in turn, play with the prices listed in the implementation of the goods or securities. They resort to risky operations, and that brings them profit at the true price calculations. Large speculators have their own methods of market analysis, and can determine in advance what prices may arise at the time of contract execution. Of course, that such forecasts are not always completely accurate. But it is this any different and the financial market.
They all offer their participants the opportunity to make a profit, and considerable. But at the same time there is a risk. It should be noted another pattern in terms of those who are usually involved in the financial markets. Among them there are differences in the time of execution of transactions. The fact that all transactions are concluded for a fixed term or with respect to time, as is the case with the currency market. Therefore, the party split into those who lead a long-term activity in the market and those who commit short-lived transaction.
There are also differences between the parties to the various markets. For example, the currency market in this respect is universal. Trader currency market have the ability to sell assets and in short time intervals, and are called scalpers, and long intervals, up to a year-long. Contract markets are more suitable for medium-term trading because it is impossible to conclude contracts for two days. Futures and options are usually purchased with the deadline for a few weeks.
risk situations
As mentioned above, any stock market contains a certain risk. Each market is characterized by the risk of a greater or lesser degree. Even the definition of financial stability is observed on some financial markets. An example is the market of futures contracts. It is due to the stability of the conditions of purchase of sale of futures. On their own futures are contractual agreements. The concept of a contract involves strictly fulfillment in the time of the contract obligations. It is these agreements binding on, and justified the low risk situations in the futures market.
Another stable market is the options market. Option Trading has several other financial coloration. Options are not mandatory with respect to certain conditions. For example, the option can not be exercised at the time of expiry of the contract if the price is not satisfied with one of the parties. Furthermore, this party loses in terms of income only the funds that have been spent on the purchase of the option, but since all the other conditions are strictly regulated by the rules of option trading, this market is also relatively stable, and contains only the minimum risk positions.
In contrast to these markets are more risky assets, presented at other markets. Among them stands out the commodity market, is directly dependent on the foreign exchange market. And thus the foreign exchange market is also one of the most volatile, and therefore - and the most risky in terms of transactions.