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Follow on Google News | Become a Trader in the Fastest Growing Sector of the Financial MarketTo trade stocks successfully, a trader needs a thorough knowledge of the stock market. The best way to gain that knowledge is through IFMC Institute's Stock Market Course for Traders.
By: IFMC Institute Capital Market A capital market or equity market is a market with very high liquidity in which companies, government bodies, or other organizations can increase or raise money by issuing securities. On the other side of the trade, global investors and traders could gain access to stocks and other securities. Derivative Market A derivative is a financial instrument that derives its value from the price of an underlying asset, resource, or index. It can be a stock, security, currency, a commodity, a bond, the future price of a different asset, and so on. The derivative is not limited to being transferred between buyers and sellers – it can work as futures contracts or options – for example where there is no exchange-traded market for the underlying asset. Options Market An option is a contract that gives its owner the right, but not the obligation, to buy or sell the commodity or financial instrument at a certain time for a certain price. The right to call means that if the market moves significantly in your favor prior to the end date of the contract then you would activate that option and purchase shares. The right to put means that if the market moves in a significant way against you then you would activate that option and sell shares. Commodity market A commodity market is a market where goods and services are traded. The prices of commodities on the commodity market are determined by the laws of supply and demand. When the demand for a commodity is high, the price of the commodity will be high. When the demand for a commodity is low, the price of the commodity will be below. Currency market The currency market is a financial market where currencies (money) are traded. Currencies are bought and sold in order to make a profit. The price of a currency is determined by the supply and demand for that currency. When the demand for a currency is high, the price of the currency will be high. When the demand for a currency is low, the price of the currency will be below. End
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