Course
How a market sets a price
Work out what a price on a screen is actually telling you — and what it cannot.
The shape of it
7 lessons
About 25 minutes in total. Your progress is kept on this device — no account, nothing sent anywhere.
Course complete
Put your name on it and print it, or save it as a PDF. Nothing is sent anywhere.
The lessons
A price is the last trade
Read a quoted price as one transaction rather than a value.
7 steps · about 4 min
Someone has to be on the other side
Explain what a trade requires that a strong opinion does not.
7 steps · about 4 min
Only surprises move prices
Predict which news moves a price and which does not.
7 steps · about 4 min
Borrowed money changes the shape
Trace how leverage turns a fall into forced selling.
7 steps · about 4 min
When everyone owns the same thing
Explain why crowded positions fall together.
7 steps · about 4 min
The price of time
Work out why interest rates move the price of everything else.
7 steps · about 4 min
What a market cannot price
Name what stays outside a price, however efficient the market.
7 steps · about 4 min