Learn Forex Trading – Free Forex Course for Beginner Traders

Would you like to start trading forex but feel like the risks are too high and the learning curve too steep? Do currency quotes, technical indicators, economic data sound like gibberish to you?

Forex trading involves significant risk, and learning takes time. This course will get you started and give you a better understanding of the fundamentals of currency trading. Our educational material will guide you through the terminology of the forex market such as pips, lots and chart patterns and offer an introduction to online trading and its inner workings.

Our main purpose is to hasten the learning process by supplying you with the most useful information in the simplest manner possible. With proper education, you’ll get a head start in achieving your financial goals and be better prepared to meet any market challenge.

Currency Quotes

With CFD (Contract for Difference) trading, you don’t need to own a currency to make a trade. This is because CFDs are a financial derivative or a contract that bases its value on an underlying asset. Therefore, there are CFDs that mirror the price of stocks, currency pairs or commodities and you can buy or sell a contract.

In simple terms, when the prices are going up, or there are strong signs that point to an increase in prices, you should aim to buy in order to profit from the difference.

On the other hand, if an asset’s price is dropping, you can instead sell the contract and profit equally from the price difference between your point of entry.

However, since you can either buy or sell a contract, it stands to reason that there will be a difference price offered to buyers and a different one offered by sellers.

How to Read and Understand a Currency Quote

Upon opening the trading platform of your chosen forex broker, the first concept that you will encounter is the forex price quote. The quote simply represents the price of a currency pair on the market. When two parties exchange currencies, the price at which the transaction occurred is called a quote.

Let’s look at an example of a currency pair quote below:

EUR/USD 1.3524 / 1.3527

In the above quote, the currency on the left side (EUR) is called the base currency, while the one on the right (USD) is the one that we are selling and is called the counter currency.  The quotes that follow represent the value at which the currencies above can be exchanged i.e. their exchange rate.

1.3524 is the Bid price i.e. the price at which the market is willing to buy the currency pair, while 1.3527 refers to the Ask price, which is the price the market is offering the currency pair.

Upon executing a buy trade, we are now long the euro, and short the dollar (we bought the Euro, and sold the dollar.), in other words, we bought the euro in anticipation that it will increase in price. 

Consequently, we will wait for the value of the euro to rise above 1.35 and reach 1.38, for example, where we will be able to close our position by selling the euro and buying back the dollars, and making a profit.

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