1, short trading cycle. The shortest trading cycle is only half a day, and the longest is no more than one year, mostly between 3 and 6 months.

The purpose of the transaction is to meet the needs of short-term capital turnover.

3. The funds come from temporary idle funds, and half of them are used to make up for the temporary shortage of liquidity. The financial instruments traded have a strong currency.

4. Financial instruments used in money market trading activities have short term, strong liquidity, relatively stable price and less risk, and can be cashed in the market at any time, close to the currency.

The main features of the capital market are:

1, with a long trading cycle, at least 1 year;

2. The main purpose of the transaction is to solve the contradiction between supply and demand of long-term investment funds;

3. Borrow a lot of money to meet the needs of large-scale long-term projects;

4. Compared with short-term financial instruments, marketable securities as a trading tool have high yield, but poor liquidity and greater risks.

Extended data:

The capital market is a long-term financing market, and the money market is a short-term financing market.

The capital market is a market where the government, enterprises and individuals raise long-term funds, including long-term lending market and long-term securities market. In long-term lending, it is generally consumer credit provided by banks to individuals;

In the long-term securities market, there are mainly stock market and long-term bond market. The trading object of the capital market is long-term securities for more than one year. Because long-term financial activities involve long-term capital, high risk and long-term stable income, which is similar to capital investment, it is called capital market.

Money market is a short-term capital market, which refers to the financial market with a financing period of less than one year and is an important part of the financial market. Because the financial instruments contained in this market are mainly short-term credit instruments issued by the government, banks and industrial and commercial enterprises.

With the characteristics of short term, strong liquidity and low risk, it is called "quasi-currency" after cash currency and deposit currency in the level of money supply, so it is called "money market".

Baidu encyclopedia-money market

Baidu encyclopedia-capital market