Trading Essentials

This free online course will teach you some trading essentials by offering an in-depth look at financial markets. To achieve this, you will be taught the seven key concepts of financial markets: financial instruments, margin trading, margin trading products, interacting with markets, trading costs, brokers and trading risk. You will be shown working examples for more clarity.

What You Will Learn In This Free Course

Concept of Financial Instruments

In this module, you will be introduced to the concept of financial instruments in trading. You will be shown the differences between cash and derivative instruments. You will learn why traders interact with financial instruments, the three layers of a financial instrument, what the four asset classes are and what instruments are included within each. Furthermore, you will be taught what indices are and the nuances of price.

Margin Trading Demystified

In this module, you will learn what margin is through some everyday examples and how leverage links to margin. You will be taught the two main benefits of leverage and how it is used to enhance a trader?s profits. Also, you will be shown why it is important for traders to treat margin and leverage with care. In addition, learners will gain an understanding of what a margin call is and how to calculate the margin and leverage on a EUR/USD trade.

Margin Trading Products

In this module, you will be introduced to margin trading products. You will be shown the three popular margin trading products and what CFDs, spread bets and spot forex is. You will be shown clearly, worked example of each product type in action on a range of markets and the difference between products and markets. Furthermore, learners will gain an understanding of why particular products are favoured by traders.

How Traders Interact with the Markets

In this module, you will be shown how traders interact with the markets and the various types of financial markets. Also, you will learn what a market is, the different types of markets, what buying and selling are and why traders do this. Furthermore, you will be taught an important concept in trading called ?spread?, what limit and stop orders are and how to calculate the notional of an underlying position.

Breaking Down Trading Costs

In this module, you will learn how to actively manage the main costs incurred by traders. By knowing what to look for you can save yourself vast amounts in wasted transaction costs. You will be shown the types of costs incurred by traders and the hidden cost new traders always underestimate or just don?t know about. You will be taught how to actively manage these costs so you can start treating your trading as a business.

Understanding Brokers

In this module, you will learn the role brokers play and why regulation is really important. You will be shown what to look for in a broker and how to get set up with one. Also, you will be taught how to analyze a broker?s offering, how to potentially save yourself thousands in transaction costs and the different types of brokers that exist. Furthermore, learners will have an understanding of why regulation is vital for retail traders.

Mastering Trading Risk

In this module, you will be shown the importance of having a good risk management strategy. You will learn about the four main types of risk and how to identify each one. Also, you will be taught how to manage each risk to improve your chances of being a profitable trader. Furthermore, learners will gain an understanding of tools needed for managing most of the big risks and will be taught the golden rules all traders should be applying.

Course assessment