Trading Basic: Introduction to the Capital Markets

A financial or capital market is a platform or exchange that allows people to easily buy and sell financial securities, commodities, and other items of value at low transaction costs and at prices that reflect the current market.

Markets work by placing many interested sellers in one area, thus making them easier to find for prospective buyers. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy. Some of the largest and most well-know financial markets include the NYSE and US 100 INDEX for stocks, and the NYMEX for commodities. These exchanges or markets exist in almost every country. GCM uses these markets as a base for its products thus providing transparent pricing which reflects the current markets. Also, sample information and research are available on GCM products thus enabling clients to easily get the most up-to-date information.

One of the great things about trading with GCM is its versatility, it can be applied to just about any financial market. GCM offers you the chance to trade on a wide array of different financial products from all around the world. All of these can be traded on one account, so it means that although you gain incredible diversity of markets, it is also kept quite simple to trade and monitor your financial position.

Types of financial markets

Here is a brief introduction to the most popular markets that we offer:

• Foreign Exchange market

The FX (Forex) market is where currency trading takes place; it is one of the biggest and most liquid financial markets in the world, with a daily turnover estimated to be over $4 trillion. One major benefit of trading Forex is the opportunity to trade 24 hours a day, enabling traders to react and take advantage of the market movements at all times.

• Stock market

A stock market is a public market for the trading of the company stock and derivatives at an agreed price. GCM offers products on the US 30 INDEX, US 100 INDEX, UK 100 INDEX and more.

• Commodity market

Commodity markets are markets where raw and primary products are exchanged. This is one of the fastest growing markets which is becoming more and more popular with retail traders. Previously these products were only available to institutions. Margin trading now allows retail investors the opportunity to invest in these markets. Our commodities cover an extensive variety of products, including metals, oils, gas and all major soft commodities.

Introduction to Margin Trading

Margin Trading is one of the fastest growing ways for retail investors to gain access to the world’s financial or capital markets. This surge in popularity over recent years is due to the easy-to-understand benefits of Margin Trading. With GCM everything is done online and is as easy as shopping online. Our aim is to offer both beginners and advanced traders alike the ability to invest in multiple financial markets from a single integrated online account.