Trading Basics

This course is part of Trading Strategies in Emerging Markets Specialization

Instructor: Ramabhadran Thirumalai

Access provided by Commercetools

208,743 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

1,818 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

84%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

1,818 reviews

Beginner level

No prior experience required

Flexible schedule

8 hours to complete

Learn at your own pace

84%

Most learners liked this course

Skills you'll gain

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

4 assignments

Taught in English

See how employees at top companies are mastering in-demand skills

Learn more about Coursera for Business

logos of Petrobras, TATA, Danone, Capgemini, P&G and L'Oreal

Build your subject-matter expertise

This course is part of the Trading Strategies in Emerging Markets Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 4 modules in this course

The purpose of this course is to equip you with the knowledge required to comprehend the financial statements of a company and understand the various transactions that take place in the stock market so that you can replicate the strategies discovered by the extant academic literature.

The first part of the course provides a brief introduction to financial statements and various common filings of firms. You will learn how to obtain information regarding a company's performance from them and use the information to build trading strategies. Next, you are taught basic asset pricing theories so that you will be able to calculate the expected returns of a stock or a portfolio. Finally, you will be introduced to the actual functioning of asset markets, type of players in the market, different types of orders and the efficient ways and opportune time to execute them, trading costs and ways of minimizing them, the concept of liquidity .etc. This knowledge is required to develop efficient algorithm to execute various trading strategies.

This module provides a brief introduction to financial statements and various common filings. These are the most important sources for obtaining information regarding a company's performance. Most strategies are indeed based on financial statements. After completing this module you will be able to get the important details from the balance sheets.

What's included

12 videos1 reading1 assignment1 discussion prompt

12 videos Total 68 minutes

Introduction 2 minutes
1. Introduction to accounting 5 minutes
2. The balance sheet 4 minutes
3. Assets 7 minutes
4. Liabilities 5 minutes
5. Shareholders’ Equity 5 minutes
6. Income Statement 5 minutes
7. Expenses 1 8 minutes
8. Expenses 2 7 minutes
9. Statement of Cash Flows 5 minutes
10. Cash Flows from Operations 10 minutes
11. Cash Flows from Investments and Financing 7 minutes

1 reading Total 20 minutes

10 Things to Know About Every Cash Flow Statement 20 minutes

1 assignment Total 45 minutes

Quiz 1 45 minutes

1 discussion prompt Total 10 minutes

Manchester United 10 minutes

The purpose of this module is to equip you with the skills required to identify accounting information required for building trading strategies. After completing this module you will be able to calculate the key financial ratios.

What's included

5 videos1 reading1 assignment

Before you start trading, you should first be able to calculate the expected return from a stock. The expected return comes from various asset pricing models such as Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT) and Fama-French Three Factor Model. The purpose of this module is to equip you with the skills required to calculate the expected returns of a stock (or) a portfolio. After completing this module you will be able to calculate the expected returns of a stock.

What's included

9 videos1 reading1 assignment1 discussion prompt

9 videos Total 53 minutes

1. Expected returns and risk 6 minutes
2. Diversification 6 minutes
3. CAPM 5 minutes
4. CAPM Beta 6 minutes
5. Multifactor Models 6 minutes
6. APT 6 minutes
7. Arbitrage 7 minutes
8. Arbitrage-Free Price 6 minutes
9. Risk Factors 5 minutes

1 reading Total 20 minutes

The 15-Stock Diversification Myth 20 minutes

1 assignment Total 30 minutes

Quiz 3 30 minutes

1 discussion prompt Total 10 minutes

Asset pricing models 10 minutes

This module will provide a detailed introduction to the actual functioning of asset markets. The module will cover essential details such as type of players in the market, different type of orders and the efficient ways and opportune time to execute them, trading costs and ways of minimizing them, the concept of liquidity .etc. This is required to develop efficient algorithm to execute various trading strategies. After completing this module you will have a clear idea of different types of orders and which orders to use when.

What's included

11 videos1 reading1 assignment1 discussion prompt

11 videos Total 66 minutes

1. Market and Limit Orders 5 minutes
2. Limit Order Book 7 minutes
3. More Limit Order Book 7 minutes
4. Limit Price Placement 5 minutes
5. Stop-Loss Orders 5 minutes
6. Short-Selling 4 minutes
7. Other Order Instructions 8 minutes
8. Liquidity 3 minutes
9. Transaction Costs 7 minutes
10. Implicit Transaction Costs 9 minutes
11. Implementation Shortfall 6 minutes

1 reading Total 20 minutes

Is the market microstructure of stock markets important? 20 minutes

1 assignment Total 45 minutes

Quiz 4 45 minutes

1 discussion prompt Total 10 minutes

Liquidity 10 minutes

Earn a career certificate

Add this credential to your LinkedIn profile, resume, or CV. Share it on social media and in your performance review.

Instructor

Instructor ratings

(345 ratings)

Ramabhadran Thirumalai

Indian School of Business

7 Courses 259,542 learners

Offered by

Indian School of Business

Why people choose Coursera for their career

Felipe M.

Learner since 2018

"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."

Jennifer J.

Learner since 2020

"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."

Larry W.

Learner since 2021

"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."

Chaitanya A.

"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Learner reviews

5 stars
44%
4 stars
30.47%
3 stars
11.55%
2 stars
5.83%
1 star
8.14%

Showing 3 of 1818

Reviewed on Aug 2, 2020

Good for beginner but would recommend to have a bit knowledge about trading as it will be easy to grasp, Also WEEK 3 will be very challenging as its just MATH

Reviewed on Oct 30, 2020

On the three it got i little bit complicated because it was a lack of information about a spetific topic (The CAPM) But the rest was really great. Thanks

Reviewed on Jul 25, 2020

Course structure is good, it covers almost everything but if you are looking for an understanding its not for you. They have a script and its all bookish knowledge. so all the best!

View more reviews