Overview of Financial Markets:
| Market | Approximate Size | Liquidity | Primary Instruments |
|---|---|---|---|
| Equity Markets | Global market capitalization of approximately $109 trillion as of Q2 2023. | High liquidity; stocks can be bought and sold quickly with minimal price impact. | Shares of publicly traded companies. |
| Debt Markets | Global bond market size estimated at over $133 trillion in 2022. | Varies by instrument; government bonds typically have high liquidity, while corporate bonds may have lower liquidity. | Government and corporate bonds, municipal bonds, and mortgage-backed securities. |
| Currency Markets | Daily trading volume of approximately $7.5 trillion as of April 2022. | Extremely high liquidity; major currencies can be exchanged rapidly with negligible price changes. | Foreign exchange (Forex) involving currency pairs like USD/EUR, USD/JPY. |
| Commodities Markets | Global commodity derivatives market had a notional outstanding of $2.3 trillion in 2023. | Moderate liquidity; varies by commodity (e.g., crude oil is highly liquid, while some agricultural products are less so). | Physical goods like oil, gold, agricultural products, traded via futures and options. |
| Derivatives Markets | Global over-the-counter derivatives market had a notional outstanding of $610 trillion in 2023. | Varies widely; standardized contracts like futures are more liquid than complex, customized derivatives. | Futures, options, swaps, and other contracts deriving value from underlying assets. |
| Real Estate Markets | Global real estate market estimated at over $280 trillion in 2021. | Generally low liquidity; properties take time to buy or sell, often with significant price negotiations. | Residential, commercial, and industrial properties. |
| Volatility Indexes | Not applicable; these indexes measure market volatility rather than representing a market size. | High liquidity in related derivatives; instruments like VIX futures and options are actively traded. | Indexes like the Cboe Volatility Index (VIX) indicating expected market volatility. |
Equity Indexes
| Index | Description | Track Here |
|---|---|---|
| S&P 500 | Tracks the performance of 500 large-cap US companies. Represents about 80% of the total US market value. | S&P 500 |
| Dow Jones Industrial Average (DJIA) | Measures the stock performance of 30 prominent US companies. A price-weighted index. | Dow Jones |
| Nasdaq Composite | Tracks more than 3,000 tech-heavy stocks listed on the Nasdaq Exchange. | Nasdaq |
| Russell 2000 | Measures the performance of 2,000 small-cap companies in the US. | Russell 2000 |
| S&P 400 MidCap | Focuses on 400 mid-cap US companies, representing medium-sized businesses. | S&P MidCap 400 |
Debt Indexes
| Index | Description | Track Here |
|---|---|---|
| US Treasury Yield Curve | Represents yields on government bonds of different maturities (e.g., 2-year, 10-year). Key for interest rate trends. | Treasury Yields |
| Bloomberg US Aggregate Bond Index | Measures the total return performance of US investment-grade bonds. Includes Treasuries, corporates, and MBS. | Bloomberg Bond Index |
| High Yield Bond Index | Tracks the performance of lower-credit-rated corporate bonds, also called junk bonds. | High Yield Bonds |
| Municipal Bond Index | Measures the performance of tax-exempt municipal bonds issued by states and local governments. | Municipal Bonds |
Currency Indexes
| Index | Description | Track Here |
|---|---|---|
| DXY (US Dollar Index) | Measures the value of the US dollar relative to a basket of six major currencies (EUR, JPY, GBP, etc.). | DXY Index |
| Euro/USD | Exchange rate between the Euro and the US dollar. | EUR/USD |
| USD/JPY | Exchange rate between the US dollar and Japanese yen. | USD/JPY |
| WSJ Dollar Index | A broader measure of the US dollar, including emerging market currencies. | WSJ Dollar Index |
Commodity Indexes
| Index | Description | Track Here |
|---|---|---|
| WTI Crude Oil | Measures the price of West Texas Intermediate crude oil, a key benchmark for US oil prices. | WTI Oil |
| Brent Crude Oil | Tracks global oil prices, serving as a benchmark for international markets. | Brent Oil |
| Gold (XAU/USD) | Tracks the price of gold in US dollars. | Gold |
| Silver (XAG/USD) | Measures the price of silver in US dollars. | Silver |
| Bloomberg Commodity Index | Tracks a broad basket of commodities, including energy, metals, and agriculture. | Bloomberg Commodity |
Derivatives Indexes
| Index | Description | Track Here |
|---|---|---|
| Cboe Volatility Index (VIX) | Known as the “Fear Index,” it measures market expectations of near-term volatility based on S&P 500 options. | VIX |
| S&P 500 Futures | Tracks the future price of the S&P 500 Index, allowing traders to speculate on or hedge market movements. | S&P Futures |
| Crude Oil Futures (CL) | Represents future contracts for West Texas Intermediate crude oil. | Crude Oil Futures |
| Eurodollar Futures | Tracks interest rate futures based on US dollar deposits in foreign banks. | Eurodollar Futures |
Real Estate Indexes
| Index | Description | Track Here |
|---|---|---|
| FTSE Nareit All REITs Index | Measures the performance of all publicly traded US real estate investment trusts (REITs). | FTSE Nareit |
| Dow Jones US Real Estate Index | Tracks the performance of real estate-related companies in the US. | DJ Real Estate |
| S&P/Case-Shiller US National Home Price Index | Measures changes in residential home prices in the US. | Case-Shiller Index |
Volatility Indexes
| Index | Description | Track Here |
|---|---|---|
| Cboe Volatility Index (VIX) | As mentioned earlier, measures expected market volatility based on S&P 500 options. | VIX |
| VVIX (VIX of VIX) | Tracks the expected volatility of the VIX itself, indicating shifts in volatility risk. | VVIX |
| MOVE Index | Measures bond market volatility, focusing on US Treasuries. | MOVE Index |