There are three major markets in casual trading. They are -- stocks, foreign exchange (forex) and commodities.
Stock market stock trading or (equity trading) is trading of company stock and derivatives of company stock at an agreed price. Both of these are securities listed on a stock exchange as well as those only traded privately.
In foreign exchange (currency or forex or FX), market traders select a currency pair in which one currency is traded for another. It is by far the largest financial market in the world, with the average daily trade in the global forex and related markets estimated at US$ 3 trillion.
In forex, it is common to use leveraging which enables traders to generate large profits but which is considered quite risky for the inexperienced trader.
Commodities are things for which there is demand, but which are supplied without qualitative differentiation across a given market. Characteristic of commodities is that their prices are determined as a function of their market as a whole.
Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, etc
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