Beginner
Trading Foundations
Essential knowledge every trader needs before starting
30 min
0 of 6 chapters completed0%
Chapter 1: How Markets Work
Understanding how financial markets function is the foundation of becoming a successful trader.
Live Order Book
$100.00
BIDS (Buyers)
$99.50150
$99.00200
$98.50100
$98.00300
ASKS (Sellers)
$100.50120
$101.00180
$101.5090
$102.00250
Waiting for orders...
What is a Financial Market?
A financial market is a marketplace where buyers and sellers come together to trade financial assets like stocks, currencies, commodities, and cryptocurrencies.
Types of Markets
- Stock Market - Trade shares of public companies (NYSE, NASDAQ)
- Forex (FX) - Trade currency pairs (EUR/USD, GBP/JPY)
- Crypto - Trade digital currencies (Bitcoin, Ethereum)
- Futures - Trade contracts for future delivery of assets
- Options - Trade contracts giving rights to buy/sell at set prices
Quick Check
The forex market trades shares of public companies.
Price Discovery
Prices are determined by supply and demand:
- More buyers than sellers → Price goes up
- More sellers than buyers → Price goes down
- The order book shows all buy and sell orders waiting to be filled
📝Key Takeaways
- 1Markets connect buyers and sellers of financial assets
- 2Different markets trade different assets (stocks, forex, crypto)
- 3Prices are determined by supply and demand
Knowledge Check