CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

How does trading work?

Course overview

Description

In this course we give you some key insights into the mechanisms of the trading world. We start with who’s who: the people who make things happen and how you’re connected with them. Then we take a look at market prices, showing you how they work, before finally explaining why even falling prices can create exciting trading opportunities.

Time

40 min

Level

Beginner

Benefits

Short, easy-to-digest lessons
Practical, interactive exercises
Engaging videos and graphics
Interesting facts and tips
Quiz to check your understanding

Example lesson: supply and demand in trading

In this course you’ll find exercises, charts and illustrations to help guide you through the start of your trading journey. To give you a flavour of what to expect, here’s an extract explaining how supply and demand influence the price of a market:

Suppose you were buying a car – you'd look for the lowest price on the model you wanted. And if other buyers were thin on the ground you might strike a good deal. On the other hand, if you were trying to bag a rare and sought-after vehicle, you might have to pay the seller a high price.

In the same way, the balance of demand from buyers and supply from sellers influences prices in financial markets.