<h2>What is the Nasdaq Capital Market?</h2>
<p>The Nasdaq Capital Market is a stock exchange operated by the Nasdaq Stock Market, a leading global exchange for trading securities. It is designed to serve the capital-raising needs of early-stage and small-cap companies. The Nasdaq Capital Market is the second tier of the Nasdaq's three-level listing system, above the Nasdaq Global Market and below the Nasdaq Global Select Market.</p>

<h2>How It Works</h2>
<p>The Nasdaq Capital Market has its own set of listing requirements, which are less stringent than those for the Nasdaq Global Market. To be eligible for listing, a company must meet certain financial and liquidity requirements. Once listed, companies are subject to ongoing listing standards to maintain their listing.</p>
<p>Trading on the Nasdaq Capital Market occurs through the Nasdaq Stock Market's electronic trading platform, which allows for transparent and efficient trading. Market makers and other participants use the platform to buy and sell securities in real-time.</p>

<h2>Why It Matters for Traders</h2>
<p>For traders, the Nasdaq Capital Market offers several benefits:</p>
<ul>
  <li><strong>Access to Growth Companies</strong>: The Nasdaq Capital Market is home to many early-stage and growth-oriented companies, providing traders with opportunities to invest in potential high-growth stocks.</li>
  <li><strong>Liquidity</strong>: While the Nasdaq Capital Market may not have the same level of liquidity as the Nasdaq Global Market, it still offers sufficient liquidity for most traders to enter and exit positions with ease.</li>
  <li><strong>Lower Capital Requirements</strong>: Due to the lower listing requirements, companies on the Nasdaq Capital Market may have lower market capitalizations, which can make them more accessible to retail traders.</li>
</ul>

<h2>Example</h2>
<p>For example, let's consider a company called XYZ Inc., which has a market capitalization of $50 million and is listed on the Nasdaq Capital Market under the ticker symbol XYZI. A trader using the MetaTrader 5 platform provided by STB Provider might see the following quote for XYZI:</p>
<table>
  <tr>
    <th>Bid</th>
    <th>Ask</th>
    <th>Change</th>
    <th>Volume</th>
  </tr>
  <tr>
    <td>$5.00</td>
    <td>$5.05</td>
    <td>+$0.05 (+1%)</td>
    <td>10,000</td>
  </tr>
</table>
<p>The trader can then decide to buy or sell shares of XYZI based on their analysis of the company and the market.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The Nasdaq Capital Market is a stock exchange operated by the Nasdaq Stock Market, designed for early-stage and small-cap companies.</li>
  <li>Trading on the Nasdaq Capital Market occurs through the Nasdaq Stock Market's electronic trading platform.</li>
  <li>The Nasdaq Capital Market offers traders access to growth companies, sufficient liquidity, and lower capital requirements.</li>
</ul>