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.
💡 What You'll Learn
📚 Course Syllabus
6 lessons • Click to expand sections
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.