At their core, financial markets are simply places where people buy and sell financial instruments.
These financial instruments can include for example:
In other words: financial markets are where money moves between those who want to invest and those who need funding.
"}},{"componentType":"paragraph","richBody":{"value":"A simple analogy:
Just like a marketplace brings together buyers and sellers of goods, financial markets bring together buyers and sellers of financial instruments, helping determine their price, among other factors, through the interaction of supply and demand.
Financial markets play a key role in the economy. They:
They essentially act as a bridge between savings and investment, moving money from where it’s available to where it can be used productively.
"}},{"componentType":"sectionTitle","title":"The main types of financial markets"},{"componentType":"paragraph","richBody":{"value":"You don’t need to know everything, but understanding the basics helps build confidence.
Here are the most common ones:
1. Stock markets
This is where you buy shares of companies.
Owning a share means owning a small part of that company.
2. Bond markets
When you buy a bond, you are effectively lending money to a company or government in exchange for interest over time.
3. Currency (forex) markets
Currencies are exchanged here, for example, euros to dollars.
4. Commodity markets
These involve physical goods like gold, oil, or agricultural products.
Each market serves a different purpose, but together, they form the ecosystem where investing happens.
"}},{"componentType":"sectionTitle","title":"What does this mean for you?"},{"alignedImage":{"position":"right","extension":"svg","original":"https://assets.ing.com/asset/166a6f11-fe53-4cda-b6b7-e3c4f76eeb8e/Man-skeptical-finger-spot-1.svg","transformBaseUrl":"https://assets.ing.com/transform/166a6f11-fe53-4cda-b6b7-e3c4f76eeb8e/Man-skeptical-finger-spot-1"},"componentType":"paragraph","richBody":{"value":"Understanding financial markets helps answer a key question:
“What actually happens when I invest?”
When you invest, you’re not just “placing money somewhere.” You’re:
Financial markets make all of this possible by providing structure, transparency, and pricing mechanisms.
"}},{"componentType":"sectionTitle","title":"But what about risk?"},{"alignedImage":{"position":"right","extension":"svg","original":"https://assets.ing.com/asset/9c77c493-76cd-4ed2-b687-3fee278b9ed9/Umbrella_spot-2.svg","transformBaseUrl":"https://assets.ing.com/transform/9c77c493-76cd-4ed2-b687-3fee278b9ed9/Umbrella_spot-2"},"componentType":"paragraph","richBody":{"value":"It’s important to be honest: financial markets are not risk-free.
Prices move. Markets go up and down. And the value of investments can fluctuate. That’s not a flaw, it’s part of how markets function. The value of investments can fluctuate and investors may lose part or all of the capital invested. The key difference between uncertainty and confidence is understanding.
When you understand:
…you are better equipped to make informed decisions, instead of reacting emotionally.
"}},{"componentType":"sectionTitle","title":"From complex to accessible"},{"componentType":"paragraph","richBody":{"value":"Some people hesitate to invest because financial markets feel overwhelming. But they don’t have to be.
Today, investing can be:
You don’t need to master everything.
You just need to understand enough to start making informed choices.
Financial education can play a key role in building investor confidence and help make informed decisions.
When people understand how markets work, they are more likely to:
In other words: confidence is learned, not something you either have or don’t.
"}},{"componentType":"sectionTitle","title":"A different way to see financial markets"},{"componentType":"paragraph","richBody":{"value":"Instead of seeing financial markets as unpredictable or intimidating, you can start seeing them as:
Financial markets are simply places where financial instruments are traded.
They connect people who want to invest with those who need funding and help money flow through the economy.
You don’t need to be an expert to begin. You just need to understand enough to feel comfortable taking your first step, at your own pace.
But by learning the basics, you can move from uncertainty to clarity, and from hesitation to confidence.
"}}]},"hasMacro":false,"id":"c0a24927-8868-49fc-af0a-8ad4b31933da","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Investing","url":"/en/individuals/investing"}},"componentType":"editorialHeader","coreHeader":{"body":"“Financial markets” may sound like something complex or distant.\r\nBut in reality, they’re part of everyday life, whether you realise it or not.\r\nUnderstanding what they are (and how they work) is one of the first steps toward feeling more confident about investing.","title":"What are financial markets?"},"date":"2026-08-24","readingTime":5},"publishDate":"2026-08-24T12:11:31.790+02:00"}}