Forex Basics
Everything you need to know to start trading foreign currencies
What is Forex?
Forex (Foreign Exchange) is the currency exchange market - the world's largest financial market with daily volume exceeding $7.5 trillion. It operates 24/5 across London, New York, Tokyo, and Sydney centers.
Currency Pairs
Currencies trade in pairs. The base currency (first) is measured against the quote currency (second). Example: EUR/USD = 1.10 means 1 Euro = 1.10 USD.
Major Pairs
EUR/USD, GBP/USD, USD/JPY, USD/CHF
Most traded, high liquidity, tight spreads
Minor Pairs
EUR/GBP, EUR/JPY, GBP/JPY
Without USD, good liquidity
Exotic Pairs
USD/TRY, EUR/ZAR, USD/MXN
Emerging market currencies, wider spreads
Pips and Lots
A Pip is the smallest price movement unit (usually 0.0001). A Lot is position size: Standard = 100,000 units, Mini = 10,000, Micro = 1,000.
Leverage and Margin
Leverage lets you control larger amounts with less capital. 1:100 leverage means controlling $10,000 with just $100. Margin is the collateral required to open a position.
Order Types
Market Sessions
Sydney
22:00 - 07:00 GMT
AUD, NZD
Tokyo
00:00 - 09:00 GMT
JPY, AUD
London
08:00 - 17:00 GMT
EUR, GBP, CHF
New York
13:00 - 22:00 GMT
USD, CAD
Your First Steps
Risk Warning
Forex trading involves high risk. 70-80% of retail trader accounts lose money. Never trade with money you cannot afford to lose.
Continue Learning
After understanding basics, learn risk management and technical analysis