Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 1 - Trading Introduction
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 2 - Financial Products
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 3 - Economic Principles
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What’s Included:

Economic Principles

This part of the course goes into the two economic types those being macro, and micro economics. It includes a little bit of history behind economics and then strides into the different methods, theories and their application. In macroeconomics we will learn about the circular flow of income, the business cycle, inflation, supply and demand, and unemployment. Microeconomics takes us into the principle of scarcity, opportunity cost, basic supply and demand, price elasticity, and finally the efficient market hypothesis/random walk theory.

Central Banks

This section is about the fiscal decision makers namely central banks, we learn about the US Federal Reserve, The European Central Bank, and The Bank of England. We also go into the Central Bank Speeches that are relayed across to the market and why they are important. Finally we finish with other groups worth mentioning these being the OECD, and the IMF as these are occasionally ones to look out for.

US Economic Indicators

Here we list and explain all the major US economic data releases, and have even made your life easier by listing the times and importance rating on the market! The section is broken down into its relative area’s these being (1) Employment, National Output & Income, (2) Orders, Sectoral Production, and Inventories, (3) Prices, Wages, & Productivity, (4) Housing & Construction, (5) Consumer Spending, and lastly (6) Foreign Trade.

UK Economic Indicators

This part lists the main UK figure releases according to their relevant area these being (1) Employment, National Output, & Income, (2) Consumption, Retail and Sales, (3) Costs & Prices, (4) Orders, Sectoral Production & Inventories, (5) Housing Lending & Prices, (6) Inflation.

European Economic Indicators

We explain the main European figures in this part, what they are, how they are composed, and what they affect.

Reading Economic Indicators

This lesson is provided to help you understand the reading and application of the economic data, as more often than not it can be a minefield of information to comprehend. This document aims to make it easier for you to understand them and what can influence the indicators, eventually giving you the motivation to predict them correctly and make profits out of your knowledge about them.

Bond Auctions

The final part of this stage explains the purpose and use of bond auction information provided to the market. A useful asset for determining investor sentiment in the bond market.

Central Bank Speeches

Central Bank speeches are really important indicators of future policy of Central Banks and are watched closely by the markets and in this lesson we will be looking at the dynamics that make up Central Bank speeches.

Trading Individual Stocks

Individual stocks are an important part of the global markets and they have an impact on non-stock orientated markets. Companies also make up the indices that they are listed on so this section will show you what is involved when looking at individual companies and stocks.

The How To Do:

This stage may appear rather complex to many, but the information is vitally important to grasp a wider understanding of how markets work and the aims of those with influence in them. Fundamentals play a big part in the decision making of the big players and institutions so it becomes apparently clear then that this is a must know area of trading. Use the central bank section and start to learn the members who often make comments as these too influence market moves, get to know the important speakers, and read the meeting minutes.

Furthermore, start predicting interest rate movements, find out the causes of rate moves, etc. You can find further information in the Central Bank home pages on the web.

We want You To:

Take this section in nice chunks there is a lot to get through, for further knowledge it would be great if you start reading financial magazines and papers if you are not already doing so, get into the habit of checking the news, and getting a feel for what is going on out there in the markets. Once you have completed this stage you will be tested on what you have learnt in the good old end of stage exam!

Economic Data For Daily Figure Releases

After each section you will be asked to complete some helpful questions (in red) to help you with your understanding. Please note that these do NOT form part of the examination.

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