Forex Essentials
Four practical classes on the mechanics of a forex trade: reading a quote and the spread, pip value on any pair, leverage and margin, and sessions, orders and rollover.
Market Basics explained what the forex market is. This course explains how a forex trade actually works, in the numbers your broker shows you: what a quote costs to cross, what one pip is worth on any pair, how much margin a position ties up, and which orders and hours matter.
Each class works the same way:
- Read the class and work through each example with a calculator.
- Tick I’ve read the class.
- Check yourself with the short quiz. You need 70% to pass, you can retake it as often as you like, and your best score counts.
When you finish, take Risk and Money Management next: it turns these numbers into a rule for how much to trade.
This course explains how forex trading works. It is not trading advice, and nothing in it tells you to buy or sell anything. Leveraged forex trading carries a high risk of loss.
This course is free to read. Sign in to tick off each class, take the quizzes and earn the certificate.
Units
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1
Reading a Quote: Bid, Ask and the SpreadEvery forex price is really two prices. Which one you get, what the gap costs you in pips, and when it gets bigger.
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2
What a Pip Is Worth on Any PairYour chart counts in pips; your account counts in dollars. How to turn one into the other on any pair.
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3
Leverage and Margin, in NumbersThe deposit a trade locks up, the cushion left over, and why a trade that is too big gets closed before your stop is ever reached.
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4
Sessions, Orders and RolloverThe four kinds of order and when to use each, protecting a trade before it starts, holding overnight and over the weekend, and the news that moves currencies.