What are the types of stock markets?

The stock exchange markets, which have many types of live stock exchanges under their roof and even act in conjunction with each other, are separated from each other according to investment instruments and transaction types. These types, which we are sure you are not unfamiliar with, are as follows:

1- Stock Exchanges

2- Futures Exchanges

3- Option Exchanges

4- Gold and Precious Metals Exchanges.

What do these exchanges mean? Stock Exchanges, which draws attention as one of the stock exchanges we hear the name of the most, first entered our lives in Turkey in 1983. The Stock Exchanges, whose current name is Istanbul Stock Exchange (BIST), are divided into two as primary market and secondary market. What do primary and secondary markets mean? While primary capital transactions involve the issuance of assets, secondary markets are where trading transactions are carried out. Due to trading transactions, secondary markets are differentiated from capital markets and constitute securities markets. One of the most important details to know is that stock exchanges also have corporate identities as they have their own unique movements. Futures Exchanges, on the other hand, enable the purchase and sale of a commodity, which is determined in simple terms, between certain dates or in line with the determined date. These trading transactions are called trading contracts. Exactly at this point, Futures Exchanges come into play. The market where the trading contracts change hands is called Futures Exchanges. Futures Exchanges, which cause many prejudices due to the high risks and differences they carry, are based on the policies of hedging and balancing the risk that may occur in terms of establishment and implementation. In summary, it is interpreted as a security system applied by the investor who wants to sell a commodity to protect himself. As in the stock exchange, futures transactions are divided into subheadings within themselves: Futures on commodities and precious metals, which are considered as basic; wheat, cotton, cocoa, copper... Futures on financial assets; foreign exchange, bonds, high-yielding securities, stocks and papers known to be valuable... Stock index futures; transactions made in line with the ratios of shares traded based on a specific index. Another type of stock exchange, such as Stock Exchanges and Futures Exchanges, is the Options Exchange, also known as the Selective Trading Exchange. In summary, it is shown as the purchase or sale of a specific asset that depends on its owner at a predetermined price on a specific date or time. This transaction is called a contract, and the asset linked to the contract can be dollars, gold or a security. While the option right gives the holder an advantage for a future transaction, remaining inactive and not taking any action leads to the loss of the option. If an investor does not exercise his option right, he also loses the option municipality. This transaction, which would cause a loss in the spot market, gives the opportunity to lose option transactions with minimal loss. The option price is known to be a very small amount compared to the price of the asset. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!