Types of Financial Markets

The financial market can't be summed up in a small definition since it is a broad area that includes any market where we have a buyer and a seller who exchange, i.e. trade assets, stocks, derivatives, and currencies. Financial markets have their own rules regarding transparent pricing, costs and fees, and general regulations that apply to all of the above.

Financial markets spread throughout the world since every corner of the planet has its own market and its active participants. The Forex market is definitely the most active one and the New York Stock Exchange with turnovers of trillions of dollar daily. The financial markets offer a series of tradable assets, and they have become available to individuals (like Forex), even though they used to be closed to the wider public until it was taken online in the 21st century. What kinds of markets exist can be found below.

The Forex Market

The Foreign Exchange Market or simply Forex is the global market where currencies are traded. It is also called the most liquid market since its turnover is mind blowing with trillions of dollars. The Forex market is suitable for everyone, from individual to corporates, to banks. All currencies can be found in the market, and most financial traders are exactly in this market. The market is open day and night, except for weekends, but even then you can access the market if you trade an Asian session.

The Forex market changed from bottom to top with the turn of the century, when the Internet revolution changed the market forever by enabling access to everyone who is interested and who has an Internet connection. In the past, it was reserved for banks, big financiers, investment companies, etc., and now suddenly, if you have some money, you can join the market easily.

The Use of Math in Economic

Economics is the study of the utilization of resources, their distribution, and allocation. Mathematics represents the study of numbers which can help solve problems by using number and logic. Maths is very accurate, and quantity, size, and other features can be described with 100% precision. The mathematical link to logic makes possible to solve very complex problems which otherwise would not be so easy.

Mathematics is an important part of economics and its analyses of the global economy, market, etc. Economists use mathematical models to make projections about future economic events, as well as of what would happen if an action would be implemented and how it would affect an economy. The economic end-calculations usually take the form of a graph, formula or index.

Calculus, linear algebra, and geometry are all useful mathematical concepts for economic analyses. Representation of the data is yet another thing and has to be done accurately since it can easily happen to misinterpret them because of their complexity and relationships in isolation.

Strategies for Forex Traders

Forex is the biggest and most liquid financial market with the biggest turnovers of all financial markets. Once you learned how to trade and use the tools, you might want to work on your strategic approach to making your profits more steady and efficient. The thing is that Forex trading requires strategies which differentiates it from gambling. You probably have already noticed that your platform offers you different tools that you can customize or set up to optimize trading results. Forex is also the extracurricular activity for people besides their regular jobs, and the largest Forex group includes part-time traders. Being a part time trader does not mean that you are an inactive or passive trader as long as you regularly come back and place your trades. One of the downsides of not being present at all times is missing out on market opportunities, which can lead to loss of funds. If the bought currency pair suddenly drops in value while you are at work, you might miss the opportunity to sell it on time and safe some money. Even in these cases, certain strategies were developed to avoid such failures and to get the most out of the situation

Night Traders

Many people prefer night hours to trade, but they encounter the problem of a still and not moving market since the active movements take place during day time. It makes no use to trade the USD in the night. What night traders can do is to trade currencies that are active at night like the AUD (Australian Dollar) or JPY (Japanese Yen). Make use of the different time zones, since when it is night in New York, for example, it is daytime in Australia and the Australian trading sessions are taking place while the USA market stands still. Use the benefit of the globalization to improve your trades.