Analyse Trading
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Level 1

Market basics

What trading is, which markets you can trade, how to read a quote and how to choose a regulated broker.

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  1. 1What is trading? The basics to get started the right wayTrading vs investing, time horizons, how you make and lose money, the real risks: everything you need to understand before you place your very first order.
  2. 2Financial markets: forex, stocks, indices, commodities and cryptoForex, stocks, indices, gold, oil and crypto: how each financial market works, its trading hours, liquidity and volatility, with a side-by-side comparison.
  3. 3Currency pairs: how to read a quote, the bid, the ask and the spreadBase currency, quote currency, bid and ask prices, spread: learn to read a forex quote such as EUR/USD 1.0850 and to tell major, minor and exotic pairs apart.
  4. 4Pips, points and ticks: measuring a price moveWhat is a pip in forex, a pipette, an index point or a futures tick? Clear definitions, how to calculate pip value and worked examples you can check.
  5. 5Lots in trading: standard, mini, micro and nanoStandard lot of 100,000 units, mini lot, micro lot, nano lot: understand how lot size drives pip value and your risk, with worked examples to double-check.
  6. 6Forex trading sessions: market hours in GMT and New York timeSydney, Tokyo, London and New York: forex session times in GMT/UTC and New York time, the overlaps, clock changes and when the market really moves.
  7. 7Buying or short selling: long and short positionsLong or short position, short selling, profit and loss depending on market direction: how to make money when prices rise and fall, with worked examples.
  8. 8Spot, CFDs, futures and options: what are the differences?Spot market, CFDs, futures and options: ownership of the asset, leverage, expiry and costs. A clear side-by-side comparison to choose the right instrument.
  9. 9Broker types and regulation: market maker, STP, ECNMarket maker, STP or ECN, conflicts of interest, FCA, ASIC and CFTC/NFA, the registers to check and compensation schemes: how to verify a broker first.
  10. 10Trading platforms: MT4, MT5, cTrader and TradingViewMetaTrader 4, MetaTrader 5, cTrader, TradingView or your broker's own platform: what each one is for, mobile versus desktop, and how to choose well.