Global Financial Markets
Financial markets connect buyers and sellers of financial instruments. They help move capital and support global economic activity.
Refresh the most important concepts from the course before taking the practice quiz or continuing to another learning category.
Use these summaries to revise the essential ideas from each topic.
Financial markets connect buyers and sellers of financial instruments. They help move capital and support global economic activity.
Forex involves trading one currency against another. In EUR/USD, EUR is the base currency and USD is the quote currency.
Pips measure price movement, lots describe trade size, and spreads represent the difference between bid and ask prices.
Market orders execute at available prices, while pending orders activate under specified conditions. Long positions generally benefit from rising prices, while short positions generally benefit from falling prices.
Different market sessions have different activity levels. Liquidity can affect spreads, execution, and price movement.
Leverage increases exposure using a smaller amount of capital. It can increase both potential profits and potential losses.
A trading plan should define your goals, entry rules, exit rules, risk limits, position sizing, and review process.
Take the practice quiz to test how well you remember the course concepts.