O'Reilly logo

An Introduction to Trading in the Financial Markets: Trading, Markets, Instruments, and Processes by R. Tee Williams

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

1

Cash Instruments

As described in Book 1, cash markets involve direct trading in securities and other types of assets.3 Securities are fungible, legal instruments that themselves represent the ownership of a financial asset—most often equities or debt instruments. Cash markets, as we define them, also involve trading in commodities and currencies. Cash instruments then include equities, fixed income, currencies, and commodities (see Figure 3.1).

image

Figure 3.1 Cash instruments provide actual ownership of financial assets and commodities to participants in the trading markets.

Equities

Equities represent an ownership interest in a productive asset, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required