User:Sanket2011

Introduction to Trading

What is a financial market?

Place where buyers and sellers come together Price is determined by supply and demand( the more supply the lower the price or the more demand the higher the price, all other things being equal) In equity markets, sellers are effectively selling their ownership interest in companies in return for cash In fixed income debt it is different as the buyer is loaning the seller money in return for an interest payment In currencies the buyers is purchasing a currency in return for another one In commodities the buyer is purchasing a commodity in return for cash Efficient markets- The price of traded asset is constantly changing as the market analyses and incorporates new information about the assets future prospects.