Forex questions, answered

Forex (foreign exchange) trading is buying one currency while selling another, with the aim of profiting from changes in the exchange rate. It is the largest financial market in the world and trades around the clock from Monday morning in Asia to Friday evening in New York.

Currencies are always quoted in pairs, such as EUR/USD. The first currency is the base and the second is the quote. A price of 1.1000 means one euro costs 1.10 US dollars. Buying the pair means you expect the base currency to strengthen against the quote currency.

Fundamental analysis studies economic data, interest rates and news to judge whether a currency should strengthen or weaken over time.

Technical analysis studies price charts, using support and resistance, trends and indicators to find entries and exits. Most short-term signals combine chart levels with an awareness of upcoming news.

A pip is the standard unit for measuring price moves. On most pairs it is the fourth decimal place (0.0001). On JPY pairs it is the second decimal place (0.01). On gold (XAU/USD) we count 0.10 as one pip, so a move from 4150.00 to 4152.00 is 20 pips.

A lot is the size of your position. A standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot is 1,000. On gold a standard lot is usually 100 ounces. Always check your broker's contract specifications.

On pairs quoted in US dollars, such as EUR/USD or GBP/USD, one pip on one standard lot is worth 10 dollars. On other pairs the value depends on the exchange rate. Our pip value calculator converts it into USD, GBP or EUR for you.

Forex trades 24 hours a day, five days a week. The main sessions are Sydney, Tokyo, London and New York. The overlap between London and New York, roughly midday to late afternoon UK time, is usually the most active period.

Major pairs such as EUR/USD, GBP/USD and USD/JPY are popular with beginners because they have high liquidity and tight spreads. They also have the most news coverage and analysis available.

Gold is liquid, moves strongly and often reacts to interest rates, inflation and risk sentiment. Those larger moves offer opportunity but also bigger risk, so position size should be smaller than on a typical currency pair.

Interest rate decisions, inflation, employment data, economic growth and political events all affect currencies. Central bank announcements and data such as US non-farm payrolls often cause the biggest short-term moves.

A stop loss is an order that closes your trade automatically at a set price to limit the loss. Every Forexuro signal includes a stop loss so you know the maximum risk before you enter.

A take profit is an order that closes your trade automatically once price reaches your target. Forexuro signals list three targets, TP1 to TP3, so you can take partial profits and manage the rest of the position.

Once a trade has moved far enough in your favour, for example after TP1 is hit, you can move the stop loss to the entry price. If price then reverses, the trade closes at roughly zero instead of a loss.

Many traders risk between 0.5% and 2% of their account on a single trade. Keeping risk small means a run of losses will not wipe out your account. Use our lot size calculator to turn a risk percentage into a position size.

It compares how much you could lose to how much you could gain. A trade risking 20 pips to make 40 pips has a 1 : 2 ratio. With higher ratios you can be profitable even if you win fewer than half your trades.

A forex signal is a trade idea that tells you the instrument, direction, entry price, stop loss and targets. You decide whether to place the trade in your own broker account.

Check that the price is still close to the suggested entry, calculate a position size that fits your risk, then place the order with the stop loss and targets given. Follow any management updates, such as moving the stop to breakeven.

Yes. No signal provider wins every trade and losses are a normal part of trading. Past results do not guarantee future results. Only trade money you can afford to lose.

Leverage lets you control a larger position with a smaller deposit. With 1:30 leverage, 1,000 pounds of margin can control a 30,000 pound position. It magnifies gains and losses equally, so it should be used with care and with a stop loss.

Margin is the deposit your broker holds while a leveraged trade is open. If losses reduce your account below the required margin, the broker may issue a margin call or close positions automatically.

The spread is the difference between the bid (sell) price and the ask (buy) price. It is the main trading cost on most accounts. Spreads are usually tightest on major pairs during the London and New York sessions and widen around major news or at the daily rollover.

Slippage is when your order is filled at a different price than you requested. It usually happens in fast markets, around big news releases or when the market opens after the weekend.

If you keep a position open overnight, your broker charges or pays a small amount based on the interest rate difference between the two currencies. It is called swap or rollover and appears on your account each day.

No. Many brokers allow small accounts and micro lots, so you can start with a modest balance. It is wise to practise on a demo account first and keep risk per trade small while you learn.