Basics of Forex Trading
1. What is Forex?
Forex (Foreign Exchange) is the global market where currencies are bought and sold. It is the
largest financial market in the world.
2. How Does Forex Trading Work?
In Forex trading, you buy one currency and sell another at the same time. For example, in
EUR/USD, you are buying euros and selling US dollars.
3. Key Concepts
Trend: The direction in which the market is moving (uptrend or downtrend).
Support: A price level where the market tends to stop falling.
Resistance: A price level where the market tends to stop rising.
4. Risk Management
Never risk more than a small percentage of your capital on a single trade. Good traders focus on
protecting their money first.
5. Practice and Discipline
Always practice on a demo account before trading with real money. Discipline and patience are key
to long-term success.
1
/
1
100%