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Unit 1 · Level 1 · Money & Markets

What even is a market?

A market is any place where buyers and sellers meet to trade something: vegetables, sneakers, stocks, or bitcoin. No buyers and sellers, no market. Everything else you'll learn is detail.

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What this lesson covers

Price = the latest agreement

The 'price' of Bitcoin or Apple stock is simply the last price a buyer and seller agreed on. When more people want to buy than sell, sellers can demand more and the price rises. When sellers outnumber buyers, the price falls.

What you get asked

  1. What do you always need for a market to exist?

    Screens, suits and buildings are optional. Two people willing to trade is a market.

  2. When more people want to buy than sell, the price usually ___.

    Buyers competing for limited supply push the price up. This is supply and demand, the engine behind every chart you'll ever see.

  3. Apple stock shows a price of $230. What does that number actually mean?

    Nobody sets the price from above, not Apple and not the exchange. It's just the most recent deal between two traders.

  4. Match each term to what it means

    These four words explain 90% of every price move you'll ever see.

  5. Big news: a famous fund announces it's buying huge amounts of Bitcoin. Lots of people rush to buy too. What most likely happens to the price?

    You just made your first market prediction using supply and demand. News moves prices because it changes how much people want to buy or sell.

The rest of this unit

What markets are, what you actually buy, and why prices move.