Types of Products

25 December 2020, 09:26

Next, let’s move on to what is traded on the financial markets.

There are 2 essential ways to trade.

The first is Exchange-Based trading, which is conducted on a . Examples of this include:

  • NYSE – New York Stock Exchange
  • NYMEX-COMEX – New York Mercantile Exchange – Commodity Exchange
  • CME – Chicago Mercantile Exchange
  • CBOT – Chicago Board of Trade
  • LSE – London Stock Exchange
  • LME – London Metal Exchange
  • IPE – International Petroleum Exchange

The second category is Over the Counter (OTC) trading

This refers to securities that are traded through a broker-dealer network, rather than a centralised exchange. Examples include:

  • Foreign Exchange (FOREX)
  • The Inter-bank Currency Market
  • The Derivatives & Bond Markets