Learning path

Forex Basics

Before a trader studies strategies, they need to understand what is being traded, how price movement is measured, and how leverage affects risk.

What Forex Is

Forex prices compare one currency against another. EUR/USD, for example, shows the value of the euro relative to the US dollar.

Core Terms

  • Pip: a unit of price movement.
  • Spread: the bid/ask difference and a trading cost.
  • Lot size: the size of the position.
  • Margin: capital set aside to hold a leveraged trade.