Forex trading may look confusing at first, but the truth is this: you’re simply buying one currency and selling another at the same time.
The market moves every second, and traders try to make money when prices go up or down.
This guide explains Forex in the simplest way possible so any beginner can understand it.
What Is Forex Trading?
Forex (Foreign Exchange) is the global market where people trade currencies.
You trade one currency against another — for example:
- EUR/USD → Euro vs US Dollar
- GBP/JPY → British Pound vs Japanese Yen
If you think the Euro will go up against the Dollar, you buy.
If you think it will go down, you sell.
Why Forex Prices Change
Currency prices move because of:
- News
- Economic reports
- Interest rates
- Demand and supply
- Market sentiment
When big banks, governments, or investors buy or sell large amounts, the price moves quickly.
What You Trade: Currency Pairs
Every pair has two sides:
- Base currency – the first currency
- Quote currency – the second currency
Example:
EUR/USD = Euro (base) and Dollar (quote)
If EUR/USD goes from 1.1000 to 1.1050, it means the Euro increased in value against the Dollar.
What Are Pips? (Tiny Price Movements)
A pip is a small movement in the market.
Example:
If EUR/USD moves from 1.1000 to 1.1001, that is 1 pip.
Traders measure profit and loss using pips.
What Is Leverage? (Trade Bigger With Less Money)
Leverage lets you control a large trade with a small amount of money.
Example:
With 1:100 leverage, $100 can control $10,000.
Leverage helps you earn more, but it also increases risk — beginners must be careful.
What Is a Lot Size?
Lot size means the volume of your trade:
- 1.00 = Standard lot
- 0.10 = Mini lot
- 0.01 = Micro lot
Beginners should always start with 0.01.
How You Make Money in Forex
You make money when the market moves in your direction:
- If you buy, you want the price to go up
- If you sell, you want the price to go down
If it moves the opposite way, you lose money.
How Beginners Can Start Trading
At AMEJTrading, beginners usually start with:
1. iTrade Training
Where you learn:
- Charts
- Risk management
- Market analysis
- When to buy or sell
- How to trade safely
2. iCopy Copy Trading
If you are not ready to trade on your own, you can copy professional traders automatically.
3. LiteFinance Broker (Our Partner)
We help you open a Forex trading account fast and safely with our partner broker, LiteFinance.
Final Words for Beginners
Forex trading is simple to understand, but it takes discipline, training, and patience to make consistent profits.
Do not rush. Learn the basics, manage your risk, and grow step by step.
