Trading and finance
Before we move onto exploring one of the largest ecosystems based on tokenization, decentralized finance (DeFi), let's first look at some traditional finance and trading concepts. This will provide a solid foundation for the material presented in the next section and will covers token trading and related concepts such as decentralized exchanges and asset tokenization.
Financial markets
Financial markets enable the trading of financial securities such as bonds, equities, derivatives, and currencies. There are broadly three types of markets: money markets, credit markets, and capital markets:
- Money markets are short-term markets where money is lent to companies or banks for interbank lending. Foreign exchange, or forex, is another category of money markets where currencies are traded.
- Credit markets consist mostly of retail banks who borrow money from central banks and loan it to companies or households in the form of mortgages...
