Module 1: Start Here · Lesson 2 of 6 · Back to course
In Lesson 1.1 we looked at what trading is. Now let’s look at what people trade. As a UK retail trader you’ll usually come across five main groups of markets:
- Forex (currencies)
- Stock market indices
- Commodities
- Individual shares
- Cryptoassets
Each behaves differently, is open at different times and is moved by different things. You don’t need to trade them all – most successful traders specialise in one or two markets they know well. This lesson will help you understand the options so you can choose later, once you’ve practised.
How you actually trade these markets in the UK
Before we go market by market, a quick note on how UK retail traders access them. You’ll usually do it in one of these ways:
- Spread betting – you bet an amount per point of price movement (for example £1 per point). Available only from FCA-authorised spread betting providers.
- CFDs (contracts for difference) – you agree to exchange the difference in price between when you open and close a position.
- Futures – standardised contracts traded on an exchange, popular with some prop firms.
- Buying the asset directly – for example, buying shares through a share dealing account or ISA.
Spread bets and CFDs are leveraged, which magnifies both gains and losses. We compare these products properly in Module 2. For now, focus on understanding the markets themselves.
1. Forex (foreign exchange)
What it is: Forex is the market for exchanging one currency for another. Currencies are always quoted in pairs, such as GBP/USD – the price tells you how many US dollars one British pound buys. If GBP/USD is 1.3000, £1 buys $1.30.
The first currency is the base, the second is the quote. If you think the pound will strengthen against the dollar, you’d buy GBP/USD. If you think it will weaken, you’d sell.
How big is it? Huge. According to the Bank for International Settlements’ 2025 survey, global foreign exchange trading averaged $9.6 trillion a day in April 2025, and the UK was the world’s largest centre for it, with about 38% of global FX trading (BIS, September 2025; Bank of England UK survey summary). Most of that is banks, companies and institutions – not retail traders.
Common pairs:
| Type | Examples | Notes |
|---|---|---|
| Majors | EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD | Usually the tightest spreads |
| Crosses | EUR/GBP, GBP/JPY, EUR/JPY | No US dollar in the pair |
| Exotics | USD/TRY, USD/ZAR, EUR/PLN | Wider spreads, can move sharply |
When it’s open: Forex trades around the clock from Sunday evening to Friday evening UK time (exact times vary by provider and shift when the clocks change). Activity moves through three main sessions – Asia, London and New York – and is usually busiest when London and New York overlap in the afternoon UK time. We cover sessions in detail in Module 3.
What moves it: Interest rate decisions (for the pound, the Bank of England), inflation and employment data, economic growth, politics, and general risk sentiment.
Beginner watch-outs: Forex is open almost all the time, which makes it tempting to overtrade. Big data releases can cause sudden spikes. Exotic pairs can be expensive to trade.
2. Stock market indices
What it is: An index measures the combined performance of a group of shares. Instead of trading one company, you’re trading a basket.
| Index | What it tracks | Main exchange hours (UK time) |
|---|---|---|
| FTSE 100 | 100 of the largest companies listed on the London Stock Exchange | 08:00–16:30 |
| Germany 40 (DAX) | 40 large German companies | Roughly 08:00–16:30 |
| S&P 500 | 500 large US companies | Usually 14:30–21:00 |
| Nasdaq 100 | 100 large non-financial Nasdaq-listed companies (tech-heavy) | Usually 14:30–21:00 |
| Dow Jones (Wall Street 30) | 30 large US companies | Usually 14:30–21:00 |
London Stock Exchange continuous trading runs 08:00–16:30 UK time (London Stock Exchange). US exchange hours are 09:30–16:00 New York time, which is usually 14:30–21:00 UK time but shifts by an hour for a few weeks each spring and autumn, when the UK and US change their clocks on different dates.
Many providers also quote “out-of-hours” prices for indices, so you may see the FTSE 100 moving at 3am. Those prices can be less liquid, with wider spreads.
What moves it: Company earnings, interest rates, economic data, and overall investor mood. Big US tech companies have a large effect on US indices.
Beginner watch-outs: The first few minutes after the market opens can be very fast. Indices can gap overnight – opening well away from the previous close – which can jump straight past a stop-loss (unless it’s guaranteed). Index trading is popular with prop firms, especially futures-based ones.
3. Commodities
What it is: Raw materials. The ones you’ll see most often:
- Gold and silver (metals) – gold is often quoted as XAU/USD, the price of one troy ounce in dollars
- Brent and WTI crude oil (energy) – Brent is the main international benchmark, WTI is the US benchmark
- Natural gas
- Agricultural products such as wheat, corn, coffee and sugar
Most retail traders trade commodities through spread bets, CFDs or futures rather than buying physical barrels of oil or bars of gold.
What moves it: Supply and demand, interest rates and the US dollar (for gold), geopolitical events and production decisions (for oil), weather (for agricultural products), and stock levels reported each week.
Beginner watch-outs: Gold can move a long way very quickly, so a position that looks small may be risky. Oil reacts sharply to news. Many commodity CFDs are based on futures contracts that “roll over”, which can affect prices and costs – check how your provider handles this.
4. Individual shares
What it is: A share is a small piece of ownership in a company, such as a FTSE 100 bank or a US tech company. You can either buy the share itself (through a share dealing account or ISA) or trade its price using a spread bet or CFD.
When it’s open: During the hours of the exchange where it’s listed (08:00–16:30 for London shares).
What moves it: Company results, trading updates, news about the company or its industry, broker upgrades and downgrades, and the wider market.
Beginner watch-outs: A single company can gap sharply on results day. Leverage on individual shares is lower than on forex or indices for UK retail clients, because shares are seen as more volatile (FCA PS19/18 – leverage limits range from 30:1 down to 2:1 depending on the asset). If you just want long-term exposure to companies, that’s investing rather than trading, and a different subject.
5. Cryptoassets
What it is: Digital assets such as Bitcoin and Ether. Prices are extremely volatile and the market trades 24 hours a day, seven days a week.
An important UK rule: Since 6 January 2021, the FCA has banned firms from selling crypto derivatives – including crypto CFDs and spread bets – to retail consumers in the UK (FCA press release). The FCA has warned that a firm offering these to UK retail consumers is likely to be a scam. You can still buy cryptoassets themselves through firms registered with the FCA for anti-money laundering purposes, but most crypto activity isn’t covered by the Financial Ombudsman Service or FSCS protection.
Some prop firms offer crypto pairs on their simulated accounts. We’ll look at what “simulated” means in Module 15.
Beginner watch-outs: Crypto is open at weekends, so price can move sharply while you’re away from the screen. It’s also a favourite topic for scams – be very wary of anyone offering to “manage” your crypto trading.
How to choose which market to learn first
You don’t need to decide today. But when you do, consider:
- When can you trade? If you work 9 to 5, a market that’s active in the evening (such as US indices) or a slower swing-trading approach might suit you better than the London open.
- How volatile is it? Calmer major forex pairs are often easier to learn on than gold, oil or crypto.
- What does it cost? Look at typical spreads and overnight charges. We explain costs in Lesson 1.3.
- Can you follow what moves it? Pick something whose news you can actually keep up with.
- Does it fit your future plans? If you’re interested in prop firms, check which markets and products they offer.
Our suggestion: learn one market well on a demo account rather than flitting between ten. Depth beats breadth.
Key takeaways
- The main markets are forex, indices, commodities, shares and crypto – each with different hours, drivers and risks.
- Forex is the world’s biggest market and London is its largest centre.
- Indices let you trade a basket of shares. The FTSE 100’s main session is 08:00–16:30 UK time, and the US session is usually 14:30–21:00 UK time.
- Crypto CFDs and spread bets can’t be sold to UK retail consumers.
- Start by learning one market well on a demo account.
Quick quiz
- In GBP/USD, which is the base currency? (GBP.)
- What are the London Stock Exchange’s continuous trading hours? (08:00–16:30 UK time.)
- Why can US index hours in UK time shift for a few weeks a year? (The UK and US change their clocks on different dates.)
- Can FCA-authorised firms sell crypto CFDs to UK retail clients? (No – banned since 6 January 2021.)
- What’s one reason gold may be riskier for a beginner than a major forex pair? (It can move a long way very quickly.)
Try this
Open a free charting account and pull up GBP/USD, the FTSE 100 and gold side by side on a daily chart. Over the next week, note what time of day each one moves most. Don’t trade – just watch.
FAQ
Which market is best for beginners? There’s no single best market. Many beginners start with a major forex pair or a major index because they’re widely covered and liquid, but what matters most is choosing one market and learning how it behaves.
Can I trade at the weekend? Most traditional markets close at the weekend. Some providers offer weekend prices on certain markets, which can carry wider spreads. Crypto trades all week, but crypto derivatives aren’t available to UK retail clients from FCA-authorised firms.
Do I need to follow the news? You need to know when big scheduled announcements are due so you aren’t caught out. We’ll show you how to use an economic calendar in Module 3.
Disclaimer: This page is general education, not financial or investment advice or a personal recommendation, and it doesn’t take your circumstances into account. Examples are hypothetical, for illustration only, and not an invitation to buy or sell. Learning a strategy doesn’t guarantee profits. Past performance is not a reliable guide to future results. Futures, spread bets and CFDs are complex and carry a high risk of losing money quickly because of leverage, and most retail traders lose money. With a real futures account, losses can exceed your deposit. Only trade with money you can afford to lose, and speak to an independent FCA-authorised adviser if you’re unsure. Market hours are given in UK time and may vary by provider. Figures were checked on 17 October 2026. Read our full risk warning.