Secret And Insight On How Does Trading Work

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.

As the saying goes, 'it takes two sides to make a market'. The two sides concerned are:

  • Buyers, who usually believe an asset's value is likely to rise - known as 'bulls'
  • Sellers, who generally think an asset's value is set to fall - known as 'bears'

The relationship between them powers the movements in market prices. Let's look at how that works.

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