Forex Basics

Home Beginners Forex Education Forex Basics
Forex Basics category contains articles about the basic concepts of the forex world: Pairs, lots, pip, spread, slippage, and volume are covered in simple to understand articles.

What Are the Advantages of 1:1 Leverage in Forex Trading?

When it comes to leverage, you often see larger numbers being advertised, brokers trying to entice in new traders and new webers with the promise of sky-high leverage. In fact, the new standard of leverage being given by brokers these days is around the 500:1 level which would have been unheard of a few years ago. Some people, however, still swear by simply not using leverage, to use an account with a 1:1 leverage which basically means that you will be using your own money and only our own money, not borrowing from the broker at all. This does of course come with some advantages, advantages that we will be looking at in this article, so let’s jump in and see what the advantages of trading with a leverage of 1:1 are.

How to Make Real Money with a Forex Demo Account

A demo account serves as a simulation account that traders can use to practice trading in a live environment with virtual currency. Opening a...

Five Important Stats to Log in Your Trading Journal

Whether you’re only considering trying out forex trading or you’re already a trader, there’s a good chance that you might have heard tips mentioning...

Top 10 Fun Facts About Forex Trading

When it comes to forex and trading, there is loads of information out there, it also has a very rich history, so when we...

What Equipment Do I Need to Trade Forex?

So, you want to start trading on Forex, but don’t know what equipment you need? Scared that you might start something and then realize...

Top Four Questions For a Professional Prop Trader

Becoming a professional prop trader is not easy. The positive results of trading and effort come after a few years. Whatsmore, they may not...

20 Quick Answers to Common Forex Trading Questions

Without a doubt, the topic of Forex trading brings with it many questions. There are questions related to strategies, brokers, fund management, and much...

Why Forex Traders Must Value Their Time

All traders at the end of the year always take stock of their own trading activity. There still exists an element that is never...

Classic Quotes Relevant to Forex Traders

Often when we think about certain quotes in relation to forex and trading, we are thinking of ones that are solely from those that...

Forex VIP Trading Accounts Explained

A VIP account is a type of trading account that is offered by many forex brokers. If you’ve heard of them, you might already...

How to Correctly Deal With Forex Losses

For most traders, the toughest aspect of trading in Forex is dealing with financial losses. It’s not just a matter of pain and anguish,...

Pips and Lots: What They Are & How They Differ

In this article, we have to do some basic math. It is very likely that you have heard the terms "lot" and "pips" and...

Women in the World of Forex

In this article, everything is based on an opinion, experience, conversation, and basic research by people that work professionally as traders on forex. It...

A Summary of Trading For A Living by Dr. Alexander Elder

Trading For A Living is an excellent read for those who wish to learn about the many aspects of the trading world. The book was written by Dr. Alexander Elder and published initially in 1993, with a new version in 2014 (translated into Spanish in 2017). What follows is a summary of this work for those who are interested in learning more about trading. 

How to Recover From a Blown Trading Account

The worst-case scenario for the many traders is a blown account, this is where your broker has decided to close all of your trades...

Weird Hobbies That’ll Make You Better at Forex

There are things that we do in our everyday lives that can actually make us better at trading. Some of them may be related,...

The Best and Worst Days of the Week to Trade Forex

All forex traders have a different amount of time to dedicate to trading. Some of us may only get online a few times a...

Which Countries Ban Forex Trading?

Forex trading is certainly legal in the vast majority of countries around the world, and very few countries prohibit speculative currency trading. At present,...

What is a Forex PAMM Account?

You will see that some Forex/CFD brokers, usually the largest, offer a "PAMM Account". What is this type of account? In short, "PAMM" (in...

Gann’s 20 Rules of Trading

William D. Gann was a financier who developed a technical tool known as Gann’s angles. The trading rules with which it operated are as...

Supply, Demand and Liquidity as Drivers of Prices

Markets are "places" where people and institutions exchange assets. It may be stock shares, commodities, grain, livestock, or currencies, but all markets behave similarly. Buyers and sellers look for the

The Best YouTube Channels for Forex Traders to Follow

Traders can get information about forex trading from a variety of sources, including articles, eBooks, audiobooks, and paper novels, training courses, webinars, seminars, videos,...

Even a Combination of Double Top and Engulfing Fails

Double Top/Double Bottom is one of the most robust patterns that price action traders wait to take entries. When the price is rejected twice at a resistance level, it forms

Is it Possible to Trade Forex on Sundays?

If you’re new to forex trading, you may be eager to trade as much as possible, or perhaps you’re trying to figure out a...

Forex or Crypto Trading: Which is More Profitable?

Forex and Cryptocurrency markets are very popular. With both traders trade looking to profit from this, but in itself which market is the most profitable? While cryptocurrency is growing, it is quite volatile, even more than the Forex market which makes many wonder which option is the most profitable.

The Inertia of Asset Prices

Of all the factors of investment-those deviations in price behavior that, in theory, should not exist-, there is one that stands out over others...

How Long Does It Take To Learn To Trade Forex?

It’s an interesting question, how long does it take to learn to trade? The fact of the matter is that there is not a...

What is “Recency Bias” and How Can You Avoid It?

Recency bias is a common trading mistake that many forex traders make without even realizing they’re doing so. Since this issue can cause losses...

Forex Trading: Expectations vs. Reality – Part One

When you tell someone about trading and forex, what do you tell people? Most likely you are telling them all the best things about trading, these good reasons are the reason why you trade in the first place after all. These stories that you are telling other people are what is creating an expectation in them of what trading and forex actually are. If you look anywhere on the internet, there will be people talking about forex and how much you can make, how easy it is, and how life-changing it is, very rarely do you hear horror stories or the opposite feelings. This creates a certain expectation from people outside of the trading circle, expectations that do not really match up to the reality of what trading is and what it involves. We are going to be looking at what some of the realities are when compared to the expectations that a lot of people have and seeing whether the general expectation is right, or if reality is completely different.

Top Quality Forex Education Is Essential to Success – Here’s Why…

Those that are looking for a source of primary or extra income can take advantage of the ability to buy and sell currencies online...

SMART Goals For Forex Trading

You have probably come across the term SMART goals before, it is used all over the world in pretty much every profession that you...

How to Open a Trading Account with Only $5

If you’ve ever compared forex brokers, you might have noticed that some companies require a large amount of money to open a trading account....

ECN Account or Standard Account: Which is Best?

One of the most basic questions regarding trade is what kind of broker to use. The conclusion will depend on your situation, but let’s...

Is Forex Really Just a Game of Probabilities?

Many things in life are all about probabilities, forex is no different. The most well-known game of chance is the simple coin flip, it...

Bill Williams – Psychological Analyst, Author, and Trader

Bill Williams is well-known in the forex industry because of his input from an educated psychological standpoint and because he has created multiple trading...

7 Horrible Mistakes You’re Making With Forex Trading

If we are going to be completely honest, we all make mistakes and when it comes to trading, we have made many, and we are sure that you have too. Some of them are not too bad, some of them though, are pretty horrible and have thrown off our trading quite a bit. If you look back, we are sure that there are some mistakes that you have made in the past, especially when just starting out that you are most likely not too proud of. We are going to be looking at some of the horrible mistakes that we have made and that other trades have made during their forex trading careers.

What Do I Need to Trade Forex?

We know why you’re here – you’ve heard about forex trading, and you’re looking to get involved. Forex trading can be a great source...

40 Key Phrases About the World of Finance by Robert Kiyosaki

Robert Kiyosaki is an American entrepreneur, investor, writer, speaker, and motivational speaker of Japanese descent. He is the founder, CEO, and majority shareholder of...

Problems Everyone Has With Forex (and How To Solve Them)

When it comes to forex trading, every single trade will have its own individual experiences, however, there will also be a lot of things...

How to Explain Why You’re Trading Forex to Your Spouse

If you’re currently married and you’ve just decided to take up forex trading or you’ve recently opened a trading account, you might have a...

The Forex Trader’s Starter Kit

Everyone wants to get into trading these days but there is just so much to it, when you finally get in you will be...

A Lesson from Bill Lipschutz: Professional Forex Trader

If you Google “top forex traders” or anything close to the phrase, Bill Lipschutz is bound to be on the list. This professional trader...

Advantages of Forex Trading – Leverage, Liquidity, and Volatility

There are a lot of advantages to trading forex over some of the other methods of trading such as stocks, some of these advantages...

Everything You Need to Know About Islamic Forex Accounts

There are many Forex brokers that offer today the option to open an Islamic account. To understand how these accounts work, you first need...

Check Out These Go-To Forex Resources

Knowledge is power alright, but where do you build that knowledge matters more. There is nothing worse than learning the wrong. Many successful investors...

Is Forex Trading Actually Profitable?

You probably know that most retail Forex traders lose money. In this article, we examine the statistics reported by Forex brokers on the profitability...

Signs that You’re Ready to Open a Live Account

Have you been considering the benefits of becoming a forex trader lately? Perhaps you’ve heard stories from close friends or family members about the...

Signs You’re Actually Becoming a Forex Trading Expert

We all hope that one day we can be considered an expert trader. Being an expert will mean that we know exactly what we're...

Accept It, There Is No Holy Grail In Trading

The Forex markets are its own beast, many traders will say that at times, it just does what it wants with no real reason...

How Much Can You Really Earn from Trading Forex?

How much can I make trading forex? This is a question that you hear quite a lot being thrown around or asked in various...