THE DESK ACADEMY · MODULE 02
Learn how Forex, Gold, indices, equities, and cryptocurrency work, what makes them different, and what to understand before trading them.
01 · THE MARKET UNIVERSE
A financial instrument is an asset or contract that can be traded or invested in. Each instrument has its own market structure, price drivers, trading hours, volatility, and risks.
Understanding the instrument is the first step toward making informed decisions. A strategy that works in one market may behave differently in another.
Before looking for an entry, understand what you are trading, how its price moves, and which risks may affect it.
02 · THE MAIN INSTRUMENTS
These markets are commonly followed by traders and investors. Their characteristics are different, so each requires its own analysis.
Forex is the market for exchanging one currency for another. Currency pairs such as EUR/USD express the value of one currency relative to another. Interest rates, economic data, and central-bank decisions can influence exchange rates.
Gold is a precious metal traded globally. Its price can respond to US dollar movements, real yields, interest-rate expectations, investment demand, and geopolitical uncertainty. Gold can be highly volatile, especially around major economic releases.
An index measures the performance of a group of securities under a defined methodology. Examples include the S&P 500 and Nasdaq-100. Index prices can be influenced by constituent companies, earnings, interest rates, and overall market sentiment.
Equities represent ownership in a company. Their prices may respond to earnings, business performance, company announcements, valuation, and broader economic conditions. Individual stocks can carry company-specific risks.
Cryptocurrencies are digital assets that use cryptographic technologies. Bitcoin and Ether are prominent examples. Prices may react to adoption, liquidity, regulation, market sentiment, and developments in the crypto ecosystem. Volatility can be substantial.
A derivative derives its value from an underlying asset or reference price. A Contract for Difference (CFD), where available, allows traders to speculate on price movements without owning the underlying asset. CFDs may involve leverage, financing costs, and significant risk of loss.
03 · COMPARE BEFORE YOU TRADE
No instrument is always the best choice. The right instrument depends on your knowledge, trading objectives, risk tolerance, and the conditions of the market.
| Instrument | Potential Price Drivers | Key Considerations |
|---|---|---|
| Forex | Interest rates, economic data, currency demand | Leverage, spreads, event volatility |
| Gold | US dollar, yields, investment demand | Sharp moves, news sensitivity |
| Indices | Corporate earnings, rates, sentiment | Broad market sell-offs, concentration |
| Equities | Company results, outlook, valuation | Company-specific events, liquidity |
| Cryptocurrency | Adoption, liquidity, regulation, sentiment | High volatility, custody, platform risk |
Leverage magnifies exposure and can magnify losses. Product terms, trading hours, spreads, and available protections vary by provider and jurisdiction. Understand the terms before placing a trade.
04 · BUILD YOUR MARKET CHECKLIST
Use these checks to avoid choosing an instrument based only on excitement or a recent price move.
Know whether you are trading an asset, a share, a currency pair, or a derivative.
Know which economic releases, company events, or market conditions may affect the price.
Review spreads, fees, trading hours, liquidity, leverage, and contract specifications.
Set your invalidation level and position size before entering the market.
KNOWLEDGE CHECK
Answer all five questions. You need at least 4 correct answers to pass.