🔹 1. What is Forex Trading?
What is Forex Trading?
Forex trading, also known as foreign exchange trading, is the process of buying and selling currencies to make a profit. It is the largest financial market in the world, with trillions of dollars traded daily.
Why Forex Trading is Popular
- 24 hours market
- Low starting capital
- High liquidity
- Accessible from anywhere
Example of Forex Trading
If you buy EUR/USD at 1.1000 and sell it at 1.1050, the difference is your profit.
🔹 2. How Forex Market Works
How Forex Market Works
The forex market works through a global network of banks, brokers, and traders. There is no central exchange.
Currency Pairs
- Major Pairs (EUR/USD, GBP/USD)
- Minor Pairs
- Exotic Pairs
Buy & Sell Concept
You buy one currency while selling another simultaneously.
🔹 3. Forex Terminology
Forex Terminology
- Pip: Smallest price movement
- Lot: Trade size
- Leverage: Borrowed capital
- Spread: Difference between buy & sell price
- Margin: Required deposit
🔹 4. Forex Trading Sessions
Forex Trading Sessions
The forex market runs 24 hours and is divided into sessions.
- Asian Session
- London Session
- New York Session
The London and New York overlap is the most volatile.
🔹 5. Types of Forex Markets
Types of Forex Markets
- Spot Market
- Forward Market
- Futures Market
Retail traders mostly trade the spot market.
🔹 6. Forex Trading Accounts
Forex Trading Accounts
- Demo Account
- Standard Account
- Micro Account
- Islamic Account
Beginners should always start with a demo account.
🔹 7. How to Read Forex Charts
How to Read Forex Charts
- Line Chart
- Bar Chart
- Candlestick Chart
Candlestick charts are most commonly used by traders.
🔹 8. Forex Indicators for Beginners
Forex Indicators for Beginners
- Moving Average
- RSI
- MACD
- Bollinger Bands
Indicators help traders identify trends and momentum.
🔹 9. Risk Management & Lot Size
Risk Management & Lot Size
Risk management is the most important part of forex trading.
- Risk only 1–2% per trade
- Always use stop loss
- Correct lot size matters
🔹 10. Common Forex Mistakes
Common Forex Mistakes
- Overtrading
- No stop loss
- Emotional trading
- Ignoring risk management
