1. An Introduction to the Markets

Getting Started

So, you want to be a trader, but you don’t know what to trade, how to trade or where to trade?

This is the place to start.

By the end of our trading academy you’ll be informed, enlightened and empowered to start trading for real.

Let’s get down to business; if you want to trade the financial markets, you need to understand what the financial markets are.

If you are confused or not sure, don’t worry, you may know more than you think you do. The financial markets have many names such as the stock market, capital markets, and even just the markets. Put simply, the financial markets are where buyers and sellers can participate in the trading of assets.

There are different types of markets, different participants, different products and even different types of investors. To understand the markets fully, it’s important to understand all the players involved.

Financial Markets

The financial markets are basically an 'International flow of money chasing money'.

There are 3 Main Global Centers located across the world in Tokyo, London, New York.

And there are even more types of MarketsFOREX & Money Markets, Equities, Commodities, Fixed Income & ETF Markets & Emerging Markets.

These different products are traded on what are known as Exchanges. One of the most well known exchanges for example is the NYSE(New York Stock Exchange).

Market Participants

Now that you have a basic understanding of what the financial markets are let’s take a look at the institutions and corporations that make them.

A list of the main market participants are;

Commercial Banks – Retail and Investment Banks

Brokers – Electronic and Voice Brokers

Institutional Investors – Corporate and Investment Institutions e.g. Pension Funds / Hedge Funds

Central Banks – such as the BoE (Bank of England)

Types of Product

Next let’s move on to what is actually traded on the financial markets.
There are essentially two different methods of Trading;

The first is Exchange Based Trading
Trading which is conducted on a centralized, highly regulated exchange
Example:

  • NYSE - New York Stock Exchange
  • NYMEX-COMEX - New York Mercantile Exchange - Commodity Exchange
  • CME - Chicago Mercantile Exchange
  • CBOT - Chicago Board of Trade
  • LSE - London Stock Exchange
  • LME - London Metal Exchange
  • IPE - International Petroleum Exchange

The second is Over the Counter trading (OTC)
A security traded off an exchange, usually directly between banks through a dealer network
Example: The Inter Bank Currency Market, The Derivatives & Bond Markets.

Types of Investor

What kind of trader are you? There are several different styles of trading which will more often than not categorise a trader into one of the two below;

Hedger - A person whose primary motivation is not seeking profits, but instead to reduce the risk of adverse price movements in a security

Speculator - A person seeking large profits in return for large risks by trying to anticipate price movements, in the hope of making quick, large gains

Begin trading today! Create an account by completing our form

Contracts for Difference (CFDs) and margined FX are leveraged products which carry a high degree of risk to your capital. Prices may move rapidly against you and may result in you losing more than your initial deposit. CFDs and FX may not be suitable for all investors and you should fully understand the risks involved before opening an account. Please read the Risk Warning Notice on our website.

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Office network
  • London Office
    One Financial Markets
     
    20 Savile Row,
    London,
    W1S 3PR 
    United Kingdom
     
    T: + 44 (0) 207 534 0950   
    E: info@ofmarkets.com
  • Kuwait Office
    VI Markets 
    Sharq - Mazaya Tower 02 - 10th floor 
    PO BOX 3040
    22031,
    Salmiya, Kuwait   

    T:
    + 965 22256988
    E: info@vimarkets.com.kw

Version International Markets is an introducer appointed representative of One Financial Markets with firm reference number 672736.

Your account is held with One Financial Markets and all dealing, administration and settlement is carried out by them. 

One Financial Markets is the trading name of C B Financial Services Ltd, a company registered in England with company number 6050593. C B Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Services Board in South Africa (with FSP number 45784).

One Financial Markets (DIFC) Ltd is a company registered in the Dubai International Financial Centre at Index Tower, Level 10, Office 1008, PO Box 507147, Dubai, United Arab Emirates. One Financial Markets (DIFC) Ltd is regulated by the Dubai Financial Services Authority.

One Financial Markets (Asia) Ltd is an approved introducing agent of One Financial Markets, authorised and regulated by the Hong Kong Securities and Futures Commission (with SFC CE No BFZ621).

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