Learn forex

Plain-English guides to how the currency market works, what the jargon means and how traders manage risk. Start at the top if you are new, or jump to the topic you need.

• The basicsWhat is forex trading?How the currency market works, who trades it and why prices move.
• The basicsHow to read a currency pairBase and quote currencies, bid and ask, and what a price like 1.1250 means.
• The basicsPips, lots and position sizeThe units traders use to measure moves and trade size, with worked examples.
• RiskLeverage and margin explainedHow borrowed exposure multiplies gains and losses, and what a margin call is.
• CostsSpreads, commissions and the real cost of tradingWhere trading costs hide and how they eat into short-term strategies.
• TimingForex trading sessions and the best times to tradeWhy liquidity and volatility change through the day, and when the big overlaps happen.
• FundamentalsCentral banks, interest rates and currenciesWhy rate decisions move currencies more than almost anything else.
• RiskRisk management for currency tradersPosition sizing, stop losses and the arithmetic of recovering from losses.