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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.
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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
