Everything you want to know about Forex — in plain English.
Answers to hundreds of questions from beginner traders. No jargon, with worked numerical examples. Every article written and edited by an analyst who has followed the Forex market since 2007.
Where to start — a 5-step path
For beginners · read in order- 01What is the Forex market — definition, scale, OTC mechanics Understand what the currency market actually is and how it works.
- 02How much money do you need to start trading Forex? See how much capital you really need — and how much you can lose.
- 03What is a pip and how much is it worth in EUR/USD? Learn to measure price moves and size a position.
- 04Financial leverage — how to use it safely without blowing up the account Get to grips with leverage — the biggest cause of beginner losses.
- 05Forex demo account — how to open it and what to actually practise Open a demo account and practise everything risk-free.
Editor's picks
The pieces I would start with myselfChoosing a forex broker in 2026 — the checklist that actually protects capital
Read this before you deposit your first dollar with a broker. A checklist that filters out most bad offers.
Risk management basics — the foundations every forex trader needs
The most important article on this site. You can change strategies — without risk management you will lose your account with any of them.
10 trader psychological mistakes — from FOMO to self-attribution bias
You will recognize yourself in at least a few of these. Each of these mistakes cost me real money before I learned to spot them.
Categories
14 topic areasChoosing a broker
MT4 vs MT5, ECN vs Market Maker, regulators FCA / CySEC / ASIC, broker comparisons.
Risk management
Stop loss, position sizing, R:R, diversification, the 1% rule and when to break it.
Trader psychology
Fear, greed, trading journal, FOMO, breaking tilt after a losing streak.
Tools
Work it out before you click "buy"Pip value calculator
How much is one pip worth for your position size and pair.
Position size calculator
The lot size that keeps your loss within a fixed % of the account.
Margin calculator
The deposit your broker locks to open a position at a given leverage.
Profit / loss calculator
The result of a trade in pips and money, before fees.
Glossary
Every term explained in plain language, with a link to the full article.
Jarosław Wasiński
Frequently asked questions about Forex
What is the Forex market?
Forex (foreign exchange) is the global, decentralised market for trading currencies in pairs such as EUR/USD. It runs 24 hours a day from Monday to Friday, with daily turnover above 7 trillion dollars (BIS, 2022). There is no single exchange — trades happen directly between banks, brokers and investors over the counter (OTC).
How much money do you need to start?
Many brokers let you open an account from as little as 20–100 dollars, and a micro-lot (0.01) allows trading in tiny sizes. But too little capital means a single market move wipes you out. What matters more than the amount is risking at most 1% per trade. A sensible educational starting point is a few thousand you can afford to lose.
Can you actually make money on Forex?
Yes, but the statistics are brutal: ESMA data shows 74–89% of retail accounts lose money. The profitable minority treats trading as a craft — with a plan, a journal and strict risk management — not a lottery. Making a living from Forex requires either large capital or years of a consistent, repeatable edge. For most people it is a way to learn about markets, not quick income.
What is a pip?
A pip is the smallest standard move in a currency pair's price — for most pairs the fourth decimal place (0.0001), and for yen pairs the second (0.01). If EUR/USD rises from 1.0850 to 1.0851, that is a one-pip move. A pip's cash value depends on position size: on a standard lot (100,000 units) one pip is usually about 10 dollars.
What is leverage?
Leverage lets you control a position larger than your deposit — at 1:30, depositing 1,000 dollars opens 30,000 dollars of exposure. It multiplies both gains and losses. In the European Union, ESMA caps retail leverage at 1:30 on major currency pairs. It is not free money but a loan that, on a bad move, quickly triggers a margin call.
What is a CFD?
A CFD (contract for difference) is a derivative: you agree with a broker to exchange the difference in an instrument's price between opening and closing a position — without owning the underlying currency or share. Most retail Forex trading in Europe is done through CFDs. They are leveraged and risky, and brokers must display the percentage of clients who lose money.