NEW! Know what the current risk sentiment of the market is with our Risk-On / Risk-Off Meter!

Preschool

Course 1 of 11 View All Courses

Your Progress

Sign in to unlock progress tracking.

Currency trading? Forex trading? FX trading? Totally clueless about forex? Here's an introduction to the foreign exchange market.

Partner Center Find a Broker
  1. What is Forex?

    Think the stock market is huge? Think again. Learn about the LARGEST financial market in the world and how to trade in it.

    1. What is Forex?

      Learn about this massively huge financial market where fiat currencies are traded.

    2. What Is Traded In Forex?

      Currencies are the name of the game. Yes, you can buy and sell currencies against each other as a short-term trade, long-term investment, or something in-between.

    3. Buying And Selling Currency Pairs

      The first thing that you need to know about forex trading is that currencies are traded in pairs; you can’t buy or sell a currency without another.

    4. Forex Market Size And Liquidity

      The Forex market is yuuuuuuuggggeeee! And that comes with a lot of benefits for currency traders!

    5. How To Trade Forex

      Some of the more popular ways that traders participate in the forex market is through the spot market, futures, options, and exchange-traded funds.

  2. How Do You Trade Forex?

    Now, it's time to learn HOW to rake in the moolah!

    1. How to Make Money Trading Forex

      What is forex trading? How does forex trading work? What you need to know on how to get started in trading forex.

    2. Know When to Buy or Sell a Currency Pair

      Let’s start with the very basics. First, what drives the value of a currency?

    3. What is a Pip in Forex?

      You’ve probably heard of the terms “pips,” “pipettes,” and “lots” thrown around, and here we’re going to explain what they are and show you how their values are calculated.

    4. What is a Lot in Forex?

      How many units of currency can we trade? What size positions can we trade and what are they called?

    5. What is a Spread in Forex Trading?

      What is a “spread” when trading forex? And no, it’s not the kind of spread you use in sandwiches.

    6. Impress Your Date with Forex Lingo

      Wanna impress your crush? Here are some forex terms to help you wow that special someone!

    7. Types of Forex Orders

      “Would you like pips with that?” Okay, not that type of order, but buying and selling currencies can be just as simple with a little practice.

    8. Trading Order Types Cheat Sheet

      A cheat sheet that covers the most common order types, their functionality, and the advantages and disadvantages of each.

    9. Demo Trade Your Way to Success

      Currency market behavior is constantly evolving. Trade on demo first to get a lot of the rookie mistakes out of the way before risking live capital. There are no take-backs in the real market.

    10. Can You Get Rich By Trading Forex?

      While possible if you’re a trading genius with ice in your veins and you’re luckier than a lottery winner, building wealth through trading takes time and practice to build the skills and experience needed to be successful.

  3. When Can You Trade Forex?

    Now that you know who participates in the forex market, it's time to learn when you can trade!

    1. Forex Trading Sessions

      Just because the forex market is open 24 hours a day doesn’t mean it’s always active! See how the forex market is broken up into four major trading sessions and which ones provides the most opportunities.

    2. When Can You Trade Forex: Tokyo Session

      Godzilla, Nintendo, and sushi! What’s not to like about Tokyo?!? The Tokyo session is sometimes referred to as the Asian session, which is also the session where we start fresh every day!

    3. When Can You Trade Forex: London Session

      Not only is London the home of Big Ben, David Beckham, and the Queen, but it’s also considered the forex capital of the world–raking in about 30% of all forex transactions every day!

    4. When Can You Trade Forex: New York Session

      New York baby! The concrete jungle where forex dreams are made of! Just like Asia and Europe, the U.S. is considered one of the top financial centers in the world, so it definitely sees its fair share of action–and then some!

    5. Best Times of Day to Trade Forex

      Trading is all about volatility and liquidity. Which times of day provide the most dynamic market action and volumes?

    6. Best Days of the Week to Trade Forex

      Each trader should know when to trade and when NOT to trade. Read on to find out the best and worst times to trade.

  4. Who Trades Forex?

    From money exchangers, to banks, to hedge fund managers, to local Joes like your Uncle Pete - everybody participates in the forex market!

    1. Forex Market Structure

      Because there is no centralized market, tight competition between banks normally leads to having the best prices! Boo yeah!

    2. Forex Market Players

      The forex market is basically comprised of five different groups.

    3. Know Your Retail Forex History!

      Learn how retail forex trading started and other important forex history.

  5. Why Trade Forex?

    Want to know some reasons why traders love the forex market? Read on to find out what makes it so attractive!

    1. Why Trade Forex: Advantages Of Forex Trading

      Low transaction costs and high liquidity are just a couple of the advantages of the forex market.

    2. Why Trade Forex: Forex vs. Stocks

      Nobody likes bullies! Good thing for us, unlike the stock market, there is no one financial institute large enough to corner the forex market!

    3. Why Trade Forex: Forex vs. Futures

      The futures market trades a puny $30 billion per day. Thirty billion? Peanuts compared to the FIVE TRILLION that is traded daily in the forex market!

  6. Margin Trading 101: Understand How Your Margin Account Works

    A beginner's guide on how margin trading works. If you skip these lessons, you will quickly obliterate your trading account. Guaranteed.

    1. What is Margin Trading?

      Learn how margin trading in the forex market works. Understand all the margin jargon used in your trading account.

    2. What is Account Balance?

      What is your account balance or “Balance”? What causes your account balance to change?

    3. What is Unrealized P/L and Floating P/L?

      What is unrealized P/L? What is floating P/L? How do they affect your account balance?

    4. What is Margin?

      What is Margin? What is Required Margin? What is Margin Requirement? Don’t get it twisted. All this margin jargon is explained here.

    5. What is Used Margin?

      What is Used Margin? Learn what Used Margin is, how it’s different from Required Margin, and how it’s calculated.

    6. What is Equity?

      What is account equity or simply “Equity’? Why is it important to always monitor this?

    7. What is Free Margin?

      What is Free Margin? What causes it to change? How do you calculate it?

    8. What is Margin Level?

      What is the Margin Level? If the Margin Level in your account drops below a certain percentage, you can lose a ton of money. Find out why.

    9. What is a Margin Call?

      What is a Margin Call Level? Learn the difference between a Margin Call Level and a Margin Call.

    10. What is a Stop Out Level?

      What is a Stop Out Level? How is it different from a Margin Call Level?

    11. Trading Scenario: Margin Call Level at 100% and No Separate Stop Out Level

      A margin trading scenario that involves a losing trade using a broker with a Margin Call Level at 100% and no separate Stop Out Level.

    12. Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50%

      A margin trading scenario that involves a losing trade using a broker with a Margin Call Level at 100% and a Stop Out Level at 50%.

    13. Trading Scenario: What Happens If You Trade With Just $100?

      What happens if you open a margin trading account and trade forex with just $100?

    14. Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels

      Each broker or CFD provider sets their own Margin Call Level and Stop Out Level. It’s crucial to know what your broker’s Margin Call and Stop Out Levels are!

    15. The Relationship Between Margin and Leverage

      What is the relationship between margin and leverage? The two concepts are related but different. Know the difference.

    16. Margin Jargon Cheat Sheet

      A cheat sheet that summarizes all the margin jargon that all traders should be familiar with.

    17. How to Avoid a Margin Call

      Here are five ways to avoid a margin call when trading forex.

I do not think there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature.John D. Rockefellar