Introduction to Forex
- What is Forex Trading?
- Forex Market Hours & Sessions
- Understanding market sessions (London, New York, Tokyo, Sydney)
- The best times to trade based on volatility and liquidity
Forex Basics
- Currency Pairs and Quotes
- Pips, Lots, and Leverage
- Types of Forex Orders
Chart Analysis
- Understanding Forex Charts
- Introduction to chart types (line, bar, candlestick)
- Timeframes and their importance
- Introduction to Technical Analysis
- What is technical analysis?
- Key technical indicators (moving averages, RSI, MACD, etc.)
- How to identify trends, support, and resistance
Forex Strategies
Risk Management
- Risk Management in Forex Trading
- Psychology of Trading
Advanced Trading Concepts
- Introduction to Fundamental Analysis
- Market Structure & SMC Trading
- Volume Spread Analysis (VSA)
Practical Application
- Demo Trading & How to Use a Trading Platform
- Setting up a demo account
- Walkthrough of common trading platforms (e.g., MetaTrader 4/5)
- Building a Forex Trading Plan
Advanced Strategies
Finally
Currency Pairs
In forex trading, currencies are always traded in pairs. This means you’re simultaneously buying one currency while selling another. Each currency pair represents the exchange rate between two currencies, showing how much of the second currency (the quote currency) is needed to buy one unit of the first currency (the base currency).
For example, in the currency pair EUR/USD:
- EUR (Euro) is the base currency.
- USD (US Dollar) is the quote currency.
If the exchange rate for EUR/USD is 1.10, it means that 1 Euro is worth 1.10 US Dollars.
- Buying the pair means you believe the base currency (EUR) will strengthen against the quote currency (USD) — meaning the Euro will rise in value compared to the Dollar.
- Selling the pair means you believe the base currency (EUR) will weaken against the quote currency (USD) — meaning the Euro will decrease in value compared to the Dollar.
Example Scenario:
If you buy 1,000 units of EUR/USD at 1.10, you’re essentially buying €1,000 by selling $1,100. If the exchange rate later rises to 1.15, you can sell your Euros back for a profit, as €1,000 would now be worth $1,150.
In essence, forex trading always revolves around the relationship between two currencies, with traders speculating on whether one currency will rise or fall in value relative to the other.