Financial market refers to the place or place where money and capital trade, borrow and invest.

1. Money market.

Money market is a short-term financial market, which is used to issue and trade short-term debt repayment instruments within the time approved by the contract. The money market includes interbank lending market, commercial paper market and open market operation of the central bank.

2. Securities market.

Including stock market, bond market and derivative market. The stock market refers to the buying and selling process of company stocks; The bond market refers to the buying and selling process of debt securities such as government bonds, corporate bonds and private debts of small and medium-sized enterprises; Derivatives market refers to the market where financial products derived from basic assets are bought and sold.

3. Foreign exchange market.

The foreign exchange market refers to the market where currencies of various countries are exchanged and traded, and interest rates, exchange rates, profits and risks are managed. The foreign exchange market mainly includes spot market, forward market and option market.

4. Financial futures market.

Financial futures market refers to the market where various futures contracts (such as stock index futures, currency futures, interest rate futures, etc.) are traded.

5. Financial derivatives market.

Financial derivatives market is a market where financial products derived from other financial instruments are traded, such as options, futures, swaps and capitalization of securities.

In a word, the components of financial market include money market, securities market, foreign exchange market, financial futures market and financial derivatives market. These financial markets provide a platform for the flow of funds and money for this society and play an important role in promoting economic development and improving the financial system.

The financial market has its unique characteristics:

1. The financial market is a market with funds as the transaction object.

2. The trading relationship in the financial market is not a simple buying and selling relationship, but a lending relationship, which embodies the principle of separation of ownership and use right of funds.

3. Financial market can be tangible or intangible.

Conditions for the formation of financial markets:

1. The commodity economy is highly developed, and there is a huge demand and supply of funds in society.

2. Have a sound financial institution system.

3. There are abundant financial trading tools and various trading forms.

4. Sound financial legislation.

The government can manage the financial market reasonably and effectively.