forex-basics.com
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Learn in order

Four lessons to get started

From market mechanics to practice on a virtual account.

Full learning path →
LESSON 01

Understand the market

6 min read →LESSON 02

Learn to calculate pips

6 min read →LESSON 03

Understand leverage and risk

12 min read →LESSON 04

Practise with a demo account

8 min read →

Explore a topic

Knowledge you can return to

All 479 articles →

Market basics

What Forex is, who trades, when the market is open, why prices move.

30 articles →

Technical concepts

Pip, spread, lot, leverage, margin, swap, equity — definitions with worked numerical examples.

30 articles →

Choosing a broker

MT4 vs MT5, ECN vs Market Maker, regulators FCA / CySEC / ASIC, broker comparisons.

66 articles →

Technical analysis

Candlesticks, support and resistance, RSI, MACD, price patterns, price action.

61 articles →

Trader psychology

Fear, greed, trading journal, FOMO, breaking tilt after a losing streak.

38 articles →

Risk management

Stop loss, position sizing, R:R, diversification, the 1% rule and when to break it.

24 articles →

Fundamental analysis

Central bank decisions, NFP, CPI, GDP, economic calendar — how to read macro data and what really moves a currency.

31 articles →

Trading strategies

Scalping, day trading, swing, position trading, carry trade, breakout — what suits whom and how to measure performance.

75 articles →

Sessions & market hours

London, New York, Tokyo sessions — when the spread is tightest, when volatility peaks.

12 articles →

Platforms & tools

MT4, MT5, cTrader, TradingView, Expert Advisors, VPS — what you actually need at the start and later.

14 articles →

Taxes & reporting

Tax reporting for retail Forex traders — country-specific obligations and pitfalls.

23 articles →

Currency pairs

EUR/USD, GBP/USD, USD/JPY, exotic pairs, correlations — characteristics and when to trade them.

30 articles →

Practical workbench

Step-by-step platform usage, trading journal, strategy audit, price alerts, MT5 shortcuts.

36 articles →

Market participants

Central banks, FX dealers, funds, retail — who really moves the 9.6 trillion dollar daily market.

9 articles →

From theory to numbers

Calculate before
you open a position.

Enter your own assumptions and see the calculation.

All calculators →
01Position sizeCalculate volume for your planned risk.02Pip valueConvert a price move into money.03MarginEstimate the required deposit.04Profit and lossCompare entry and exit prices.

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Common 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).

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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.

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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.

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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.

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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.

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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.

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