The foreign exchange (forex) market is the largest financial market in the world, with an average daily trading volume exceeding $6 trillion.

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IN THIS ARTICLE

• S&P 500: What is it? How does it work? Why is it important?

• Dow Jones Industrial Average: What is it? How does it work? Why is it important?

• NASDAQ: What is it? How does it work? Why is it important?

• FTSE 100: What is it? How does it work? Why is it important?

• Bitcoin: What is it? How does it work? Why is it important?

• Ethereum: What is it? How does it work? Why is it important?

• Gold: What is it? How does it work? Why is it important?

• Oil (West Texas Intermediate): What is it? How does it work? Why is it important?

• 10-Year Treasury: What is it? How does it work? Why is it important?

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S&P 500

What is it?

The S&P 500, short for Standard & Poor's 500, is a stock market index composed of 500 of the largest publicly traded companies in the United States. It represents a diverse cross-section of the U.S. economy and is widely considered a leading indicator of the country's economic health.

How does it work?

The S&P 500 is a market-cap-weighted index, which means the weight of each company in the index is determined by its market capitalisation (stock price multiplied by the number of outstanding shares). Larger companies have a greater impact on the index's movements.

Why is it important?

The S&P 500 is a benchmark for the performance of the U.S. stock market and is often used by investors and fund managers to compare their returns. Additionally, the index serves as a reference for the overall health and direction of the U.S. economy.

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Dow Jones Industrial Average

What is it?

The Dow Jones Industrial Average, commonly referred to as the Dow, is one of the oldest and most widely recognised stock market indices in the world. It comprises 30 large, publicly traded companies, representing various sectors of the U.S. economy.

How does it work?

Unlike the S&P 500, the Dow is a price-weighted index. This means that the movement of the index is determined by the absolute price changes of its component stocks, rather than their market capitalisations.

Why is it important?

The Dow is considered an indicator of the overall sentiment in the U.S. stock market and economy. Many people view it as a representation of the "pulse" of the market due to its longevity and high-profile status.

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NASDAQ

What is it?

What it is: The NASDAQ, originally an acronym for National Association of Securities Dealers Automated Quotations, is an electronic marketplace in the United States primarily known for trading technology and growth-oriented companies. It lists numerous tech giants, such as Apple, Amazon, and Microsoft.

How does it work?

NASDAQ operates as a dealer's market, where buyers and sellers trade through a network of computers. It is known for its electronic trading platform, which facilitates fast and efficient transactions.

Why is it important?

The NASDAQ is closely watched as a barometer for the performance of technology companies and growth-oriented stocks. It has a significant impact on the tech sector and the overall sentiment of the market.

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FTSE 100

What is it?

The FTSE 100, also known as the "Footsie," is a stock market index representing the 100 largest companies listed on the London Stock Exchange (LSE) based on market capitalisation.

How does it work?

The FTSE 100 is a market-cap-weighted index, meaning companies with higher market capitalisations have a greater influence on its movements.

Why is it important?

The FTSE 100 is a crucial indicator of the performance of the UK stock market. It serves as a benchmark for the UK's economy and provides insights into the country's largest publicly traded companies.

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Bitcoin

What is it?

What it is: Bitcoin is the first and most well-known cryptocurrency. It is a decentralised digital currency that operates on a technology called blockchain, which ensures secure and transparent transactions.

How does it work?

Bitcoin transactions are recorded on a public ledger known as the blockchain. It uses cryptography to secure transactions and control the creation of new units, which are mined by solving complex mathematical problems.

Why is it important?

Bitcoin is significant as it represents the birth of cryptocurrencies, creating a decentralised alternative to traditional fiat currencies. It has also gained attention as a store of value and an investment asset with the potential for substantial price fluctuations.

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MARKETS 101 (GET THE 107-PAGE SALES & TRADING GUIDE HERE)

Ethereum

What is it?

What it is: Ethereum is a blockchain platform that enables the creation of smart contracts and decentralized applications (DApps). It introduced the concept of programmable blockchain beyond simple transactions like Bitcoin.

How does it work?

Ethereum's blockchain allows developers to create and deploy smart contracts, which are self-executing agreements with predefined conditions. Ether (ETH) is the native cryptocurrency used to pay for transaction fees and computational services on the platform.

Why is it important?

Ethereum's versatility has made it a hub for decentralized applications, including decentralized finance (DeFi) projects and non-fungible tokens (NFTs). It has expanded the possibilities of blockchain technology beyond digital currencies.

MARKETS 101 (GET THE 107-PAGE SALES & TRADING GUIDE HERE)

Gold

What is it?

Gold is a precious metal valued for its rarity, beauty, and resistance to corrosion. Throughout history, it has been used as a form of currency and a store of value.

How does it work?

Gold is primarily mined and refined into bars, coins, or jewellery. It can be traded on commodity exchanges and bought as an investment or hedging instrument.

Why is it important?

Gold has been a store of value for centuries and is often seen as a safe-haven asset during times of economic uncertainty. It is also used in various industrial applications, including electronics and aerospace.

MARKETS 101 (GET THE 107-PAGE SALES & TRADING GUIDE HERE)

Oil (West Texas Intermediate)

What is it?

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is one of the most actively traded crude oil futures contracts in the world.

How does it work?

WTI oil is extracted and refined into various petroleum products such as gasoline, diesel, and jet fuel. The futures contract allows buyers and sellers to lock in the price of oil for future delivery.

Why is it important?

Oil is a critical global commodity, and its price fluctuations can have a significant impact on the global economy. WTI serves as a reference for oil prices and influences energy prices worldwide.

MARKETS 101 (GET THE 107-PAGE SALES & TRADING GUIDE HERE)

10-Year Treasury

What is it?

The 10-Year Treasury is a debt security issued by the U.S. Department of the Treasury with a maturity of ten years. It is considered a benchmark for long-term interest rates and government bond yields.

How does it work?

The U.S. government sells 10-Year Treasury notes to finance its operations. Investors purchase these notes and receive interest payments semi-annually until the maturity date when they are repaid the face value.

Why is it important?

The 10-Year Treasury yield is closely monitored by investors and economists as it reflects market sentiment about the future state of the economy. It is also used as a benchmark to determine interest rates on various loans, mortgages, and other financial products.

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