Forex and Financial Markets Concepts – Part One: Getting to Know the Financial Markets

Introduction to international stock markets and Forex market

Exchanges and stock exchanges have long been the focus of interest by businessmen and traders. In the meantime, foreign exchange trades have a trading history as large as the history of the invention of money.

From year 1876 to World War I, the value of each currency, on the basis of the gold backing, gave each other relative stability against each other. Prior to this, governments and countries have always tried to weaken their currency, and this has generally led to inflation and Economies were inefficient.

After World War II (1944), an agreement was signed by Bretton Woods, under which the signatory countries pledged to keep their currency at a stable value against the dollar and the dollar reference rate, $ 35 Gold was determined for each ounce.

The agreement did not allow any country to reduce its currency value by more than 10% against other currencies for commercial gain. This system, designed to create international monetary stability, was accompanied by shortcomings, turmoil and the prevention of capital flows.

Eventually, the Bretton Woods Agreement was annulled in year 1971, and the value of the currencies of major industrialized countries was floated in international markets from year 1973.

Initially, the deregulation of currencies after the year 1973 was often followed by slower price movements between currencies, but deregulation helped greatly in the valuation of currencies based on the supply and demand of international markets.

Over time, with the decline of regulation, the freeing of the market and the activity of actors in the global financial markets, the most efficient market that human beings have ever seen has emerged.Today, governments, banks, businesses, traders, and the common people are the five major groups of foreign exchange market participants, and from the 1990s decade onwards, with the advancement of technology and mass media, the process of monitoring global markets, executing orders, The expansion of this market and the analysis of financial opportunities has become more rapid.

The large number of international exchange players has increased the volume of trading in the market. Today, the trading volume of foreign exchange exchanges is more than $ 1.6 trillion a day. In this course, after getting acquainted with other international exchanges, we will exclusively compare the foreign exchange market with other international exchanges. In general, international exchanges can be divided into four types.

Introduction to all kinds of international exchanges


Introduction to Stock Market

A stock market is a market in which traders invest or buy shares or shares of a company or set of companies and factories in the profit or loss of the firm’s stock price or in the profit or loss. Partners with that agency. An example of this stock is the Tehran Stock Exchange and the stocks of companies inside it.

Introduction to Commodity Markets

The Commodity Market contains stocks that are traded on a global or regional basis based on supply and demand. Commodity exchanges are divided into three major categories.
Hard-gold, silver, cement, metals and so on
Soft – orange juice, coffee, snacks and more
Energy – Oil, Gas, Electricity, Coal and more

Introduction to Bond Market Securities

Bond Market Bonds are often attracted by governments to engage people and raise funds for lucrative projects.

Introduction to Foreign Exchange Market – Forex Market

Foreign Exchange Market A market in which, like the aforementioned stock exchanges, the national currency is valued based on supply and demand against other currencies.

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