<p>Capital markets serve as the backbone of modern economies, facilitating the flow of funds between investors and businesses. They encompass various platforms where financial instruments like stocks, bonds, and derivatives are traded.</p>

<h2>How It Works</h2>
<p>Capital markets operate through intermediaries, such as <strong>brokerage firms</strong>, which connect buyers and sellers. These markets can be <strong>primary</strong> (issuing new securities) or <strong>secondary</strong> (trading existing securities).</p>
<ul>
  <li><strong>Stock exchanges</strong> are the most well-known secondary markets, where shares of companies are bought and sold.</li>
  <li><strong>Bond markets</strong> deal in debt securities, with <strong>governments</strong> and <strong>corporations</strong> issuing bonds to raise funds.</li>
  <li><strong>Derivatives markets</strong> trade contracts based on underlying assets, such as <strong>futures</strong> and <strong>options</strong>.</li>
</ul>
<p>Trading in capital markets can be done <strong>electronically</strong> through platforms like <strong>MetaTrader 5</strong>, or <strong>over-the-counter</strong> (OTC) through dealers.</p>

<h2>Why It Matters for Traders</h2>
<p>Capital markets play a crucial role for traders in several ways:</p>
<ul>
  <li>They <strong>facilitate investment</strong> in various financial instruments, allowing traders to diversify their portfolios.</li>
  <li>They <strong>enable hedging</strong> against risks, such as interest rate fluctuations or currency movements, using derivatives.</li>
  <li>They <strong>provide liquidity</strong>, making it easier for traders to enter and exit positions.</li>
</ul>

<h2>Example</h2>
<p>Let's consider a trader using STB Provider's MetaTrader 5 platform to invest in capital markets:</p>
<p>1. The trader wants to <strong>invest in tech stocks</strong>. They can buy shares of a tech company listed on the NASDAQ through STB Provider.</p>
<p>2. To <strong>hedge against currency risk</strong>, the trader buys USD/JPY currency pair, available on STB Provider's platform.</p>
<p>3. The trader also wants to <strong>speculate on oil price movements</strong>. They can trade oil futures through STB Provider's CFD offering.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Capital markets facilitate the flow of funds between investors and businesses.</li>
  <li>They encompass various platforms, including stock exchanges, bond markets, and derivatives markets.</li>
  <li>Traders benefit from capital markets through investment opportunities, risk management, and liquidity.</li>
  <li>STB Provider's MetaTrader 5 platform and CFD offering enable traders to access capital markets.</li>
</ul>