Introduction to Financial Markets

Financial markets play a pivotal role in shaping the economic landscape and influencing individual financial decisions. Whether you are buying and selling securities, saving, investing, or borrowing money, understanding how these markets operate is crucial. This course provides a comprehensive overview of financial markets, offering insights into their functions, key participants, and classification. Designed for individuals seeking a foundational understanding of financial markets, this course will equip you with the knowledge needed to navigate and participate effectively in these markets.

This course covers essential topics to provide a broad understanding of financial markets:

- Definition of Financial Markets and Market Participants: This introductory section defines financial markets and identifies the main participants, such as individual investors, institutions, governments, and intermediaries. Understanding the roles and interactions of these participants is fundamental to grasping the dynamics of financial markets.

- Functions of Financial Markets: Participants will explore the various functions of financial markets, including the money market, debt market, equity market, commodities market, and foreign exchange (FX) market. This segment explains how these markets operate, their purposes, and their impact on the global economy.

- OTC vs. Exchange Markets: This section delves into the differences between over-the-counter (OTC) markets and exchange markets. Participants will engage in simulations of pre-opening and regular trading sessions, learn about order types, and understand the distinction between primary and secondary markets.

- Fundamental Topics of Financial Markets: The course will cover fundamental topics necessary for a global perspective on financial markets, including the spot market. This segment provides insights into the immediate buying and selling of financial instruments, highlighting the importance of spot markets in the broader financial ecosystem.

By the end of this course, participants will:

- Understand the definition and functions of financial markets, including the roles of various market participants.

- Gain insights into the different types of financial markets, such as money, debt, equity, commodities, and FX markets.

- Comprehend the distinctions between OTC and exchange markets, including their structures, operations, and regulatory environments.

- Develop a foundational knowledge of key financial market concepts, including the spot market and the differences between primary and secondary markets.

This course is ideal for individuals looking to deepen their understanding of financial markets, whether for personal financial management or professional development. By the end of the training, participants will have a well-rounded understanding of financial market operations and be better equipped to make informed financial decisions.

To help the audience:

• Understand the functions of financial markets;
• Ascertain the difference between major market participants;
• Look at the differing types of markets;
• Understand what “primary and secondary” markets mean;
• See how exchanges and OTC markets work;
• Examine the importance of fundamental topics like supply and demand, time value of money, securities IDs, rates, day count conventions, & business days;
• Describe how spot markets work.

1. Definition of financial markets, Market participants (1 hour)
2. Types of financial markets (2 hours):
3. Money market
4. Debt market
5. Equity market
6. Commodities market
7. FX market
8. OTC vs Exchange market (2 hours)
9. Simulation of preopening and regular sessions
10. What an order is
11. Difference between a primary and secondary market;

  4. Fundamental topics of financial markets. Spot market (1 hour)

Total: theory 6h (100%)