Some Other Financial Markets in India

Some Other Financial Markets in India

Tags:      Gig Economy     Economy     WTO     WTO Public Stockholding     MSP     Economic Growth     Masala Bond     Environmental Performance Index     Forecast of Economic Growth     Functions of the Finance Commission

In addition to the Money and Capital Markets, India also has a Commodity Market, a Derivatives Market, an Over-the-Counter (OTC) Market, a Foreign Exchange Market, a Bond Market, and a Banking Market. The precise meaning of the same is given below:

1. Commodity Markets - The commodities like pulses, gold, metals, silver, oil, and grains are traded on the commodity market.

2. Derivatives Market - is the marketplace in which options and futures are traded.

3. OTC Markets - Deal with business entities that are small and can be traded cheaply without any regulations in the derivatives market.

4. Foreign Exchange Markets - The trading of currencies from various nations is the business of the foreign exchange market. Due to its ease of currency trading, it is regarded as the most liquid financial market. The traders who are eager to make money by selling at a higher rate and buying at a lower rate benefit from the fluctuating rate of currencies.

5. Bond Markets - The Bond Market facilitates the trading of corporate and government bonds, which are offered by businesses and governments to raise capital. A debt instrument with a fixed rate of return is a bond. The bond market lacks liquidity because they also have a specific tenure.

6. Banking Markets - The banking market is made up of both banks and non-banking financial institutions that offer a variety of kin.