Beginner

Basic of Trading

Everything starts here. Before you trade a single pip, you need to understand how the forex market works, what moves prices, and how to use a trading platform.

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What is Forex Trading?

The foreign exchange (forex) market is where currencies are bought and sold. It is the largest financial market in the world with over $7.5 trillion traded daily. Unlike stocks, forex trades 24 hours a day, 5 days a week across different global sessions.

Trading Sessions

  • Sydney Session (10 PM – 7 AM GMT): Low volatility, AUD/NZD pairs most active
  • Tokyo Session (12 AM – 9 AM GMT): JPY pairs most active, moderate volatility
  • London Session (8 AM – 5 PM GMT): Highest volume session, all major pairs
  • New York Session (1 PM – 10 PM GMT): USD pairs most active, overlaps with London
  • Best time to trade: London/NY overlap (1 PM – 5 PM GMT) = highest liquidity

Pips, Lots & Leverage

Pro Tip: Start with 0.01 lots (micro lots) while learning. Never use high leverage until you understand risk management completely.

MT4/MT5 Platform Basics

  • Download MetaTrader 4 or 5 from your broker website
  • Login with your account credentials (server, login, password)
  • Chart window: right-click to change timeframe and chart type
  • Place a trade: File > New Order > select pair, lot size, entry type
  • Stop Loss (SL): price at which your trade closes for a loss
  • Take Profit (TP): price at which your trade closes for a profit
  • Use the Strategy Tester to practice on historical data
Next
Candlestick Patterns

Key Takeaways

  • Forex market trades $7.5 trillion daily
  • Market open 24/5 — 4 major sessions
  • Currency pairs: base/quote currency
  • 1 pip = 0.0001 for most pairs
  • Leverage amplifies both profits AND losses
  • Always use a demo account first
  • Your broker is your access to the market
  • Never risk more than 2% per trade

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