The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell equities (stocks), debt securities. It is a place where different financial instruments are traded between different entities. You can read about the Capital Markets – Types, Examples, Features, Structure, Functions, and Advantages in the given link.
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options. In money markets financial instruments with high liquidity and short-term maturities are traded. Currency Market (Also known as Foreign Exchange Market) is a one-stop marketplace where different currencies can be bought and sold by different participants.
Further readings:
- Demand and Supply – Concepts of Economy for UPSC
- Commission for Agricultural Costs and Prices (CACP) – UPSC Notes
