Trading Markets and Definitions

Trading Markets

Commodities Trading Markets

Commodities trading markets deal in primary resources that are bought and sold often with futures contracts. A futures contract is a contract between a buyer and seller to sell the commodity at a fixed price. Commodities can be a raw material like nickel, an agricultural product like oranges or any other fixed physical substance that can be traded by investors.

Indices

Indices (plural of index) refer to a statistical measurement of a securities market or specific economy. In other words, they measure and represent overall values for a grouping of stocks or economic indicators. Prominent examples include the Dow Jones Industrial Average (DJIA), Standard & Poor’s 500, Wilshire 5000, Nasdaq Composite Index and the Russell 2000.

Equities Trading Markets

Equity by standard financial definition means the value of an asset minus any debt or outlying costs that may be related to that asset. Equities in stock market terms refers to the ownership interest that exists when holding shares of a given public or private company. The equities market, is off course, the market that most are referring to when they speak of the ‘stock market’. The terms stocks, shares and equities are interchangeable.

Forex

This is a blend word from the two words Foreign Exchange. It refers to the foreign exchange market where currencies are traded. This is a global decentralized market that includes all aspects of buying, selling and exchanging currencies at current or set prices.


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