forex•Beginner

forex basics and key terms

Master the three primary lot sizes in forex trading: Standard (100k units), Mini (10k units), and Micro (1k units). Learn to calculate pip values, determine proper position sizing, and apply the 1% risk rule for capital preservation.

6
Lessons
0h 0m
Duration
0/0
Completed
Start CourseView Progress

💡 What You'll Learn

✓Lot Sizes (Micro, Mini, Standard) — The Foundation of Position Sizing 📏
✓Spread, Commission & Swap — The Hidden Costs of Trading 💸
✓Bid/Ask Price and Quotes Explained 📝
✓Pip, Point, Tick & Pipettes — Understanding Forex Price Movements 🎯
✓Understanding Leverage, Margin & Effective Leverage ⚙️
✓Margin Call — The Trader's Warning System 🚨

Course Syllabus

6 lessons • Click to expand sections

1

Lot Sizes (Micro, Mini, Standard) — The Foundation of Position Sizing 📏

Master the three primary lot sizes in forex trading: Standard (100k units), Mini (10k units), and Micro (1k units). Learn to calculate pip values, determine proper position sizing, and apply the 1% risk rule for capital preservation.

Spread, Commission & Swap — The Hidden Costs of Trading 💸

Discover the three transaction costs that affect every trade: Spread (bid-ask difference), Commission (ECN fees), and Swap (overnight interest). Learn to minimize costs and choose the right broker model.

Bid/Ask Price and Quotes Explained 📝

Master the two-price system of forex quotes. Learn the difference between Bid (selling) and Ask (buying) prices, understand the spread as transaction cost, and execute orders with precision.

Pip, Point, Tick & Pipettes — Understanding Forex Price Movements 🎯

Master the universal unit of Forex measurement: the Pip (0.0001 for most pairs, 0.01 for JPY pairs). Learn to calculate pip value based on lot size, convert pip movements to dollar profit/loss, and use this foundation for precise risk management.

Understanding Leverage, Margin & Effective Leverage ⚙️

Master the three interconnected concepts that control your risk: Leverage (borrowed capital), Margin (collateral required), and Effective Leverage (true risk exposure). Learn why low effective leverage is the key to survival.

Margin Call — The Trader's Warning System 🚨

Understand the automated safety system that prevents catastrophic losses: the Margin Call. Learn how Margin Level is calculated, when Stop Out occurs, and how to maintain account health with proper position sizing.

←Back to forex