01
What Is Forex?
Forex is the market where currencies are exchanged and compared. The easiest way to understand it is to remember that every Forex price compares one currency with another.
Learning track 01
Forex Basics
A clear starting point for traders who want to understand how Forex works before moving into deeper market analysis.
9 published lessonsEvergreen educationFree to read
Topics in this track
How Forex worksCurrency pairsPips & lotsSpreadLeverage & marginOrdersTrading sessionsBasic risk concepts
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02
How the Forex Market Works
Forex is a global network rather than one central exchange. Banks, institutions, companies, brokers and traders interact across different financial centres throughout the trading week.
03
Currency Pairs Explained
A currency pair shows the value of one currency compared with another. The first currency is the base currency and the second is the quote currency.
04
Pips, Lots and Position Size
Pips tell you how far price moved, lots tell you the size of the position, and position size determines how much that movement is worth in dollars.
05
Bid, Ask and Spread
Forex quotes have two prices: the bid and the ask. The gap between them is the spread, which is one of the costs of entering and exiting a trade.
06
Leverage and Margin
Leverage lets you control a larger market position with less capital. Margin is the amount set aside to support that leveraged position.
07
Long and Short Positions
Long and short simply describe direction: a long position benefits if the pair rises, while a short position benefits if the pair falls.
08
Stop Loss and Take Profit
A stop loss defines where the planned loss should be cut. A take-profit level defines where planned profit may be taken. Neither level guarantees execution at an exact price.
09
Forex Trading Sessions and Order Types
Forex activity changes through Sydney, Tokyo, London and New York sessions. Order types control how a trade is entered or exited.