How to Begin Trading Forex in 2026 (Complete Course)

How to Begin Trading Forex in 2026 (Complete Course)

الحلقة التالية

If you’ve ever said, “I want to start Forex trading, but I don’t know where to begin,” then this article is for you. I’m a six-figure trader with over nine years of trading experience, and in this article, I’ll break down exactly what Forex trading is and how you can get started. Over the years, I’ve helped countless people achieve life-changing results—whether it’s buying their first car, reaching financial independence, or even making their first million.

I’m also a highly profitable trader. You might be asking yourself, how did I manage to reach this level of success at such a young age? The answer is exactly what I’m going to explain in this article. By reading from the very beginning until the end, you’ll gain the knowledge you need to place your first trade, make withdrawals, and start generating consistent results that you can replicate month after month.

In this article, we’re going to break down what Forex trading really is, how it works, and the steps you need to follow to become a successful trader.

In this article, we’ll cover everything you need to know about how the Forex market truly works, the essential tools required to get started, a simple yet effective trading strategy, how to place your very first trade, the common mistakes beginners should avoid, and most importantly—how to cash out big profits.

What is Forex?

Forex, also known as the foreign exchange market, is the process of simultaneously buying one currency while selling another. Every country in the world has its own currency, and Forex trading allows you to take advantage of the constant fluctuations in their values to generate income.

At its core, Forex is simply the exchange of one country’s currency for another. Many people have already participated in Forex trading without realizing it. For example, if you’ve ever traveled abroad and exchanged your Nigerian Naira for US Dollars, you’ve been involved in the Forex market. Similarly, when someone from the United States travels to Europe and converts US Dollars into Euros, that transaction is also Forex in action.

Whenever one country’s currency is exchanged for another, that’s a form of participation in the global financial markets. But here’s the important part—you won’t be physically exchanging cash at an airport or a bank. Instead, you’ll be trading directly from your phone or computer at a much faster pace. The real goal is to take advantage of even the smallest price movements in the Forex market, and I’ll be breaking down exactly how you can do that in the next sections.

Most Traded Currencies in Forex

As mentioned earlier, every country has its own unique currency. For instance, the USD represents the United States Dollar, while the Euro (EUR) is the official currency of the Eurozone. The British Pound Sterling (GBP) is used in the United Kingdom, and the Nigerian Naira (NGN) is Nigeria’s national currency. In South Africa, the Rand (ZAR) is the standard, while the Australian Dollar (AUD) and the New Zealand Dollar (NZD) are the official currencies of Australia and New Zealand, respectively. Japan uses the Japanese Yen (JPY), and the list goes on across the globe.

What Are Currency Pairs in Forex?

There are many different currencies in the Forex market, but you’ll notice that every currency is represented by a three-letter code. These standardized codes are created and regulated by the ISO (International Organization for Standardization), which ensures consistency across global financial markets. Each Forex pair is made up of two of these codes. For example, one of the most popular pairs is EUR/USD, which represents the Euro against the US Dollar.

You can’t randomly say “USD Euro,” because currency pairs are already standardized by the International Organization for Standardization (ISO). When we say EUR/USD, it represents a specific pair where the Euro is compared against the US Dollar. For example, if I say buy EUR/USD, it means I’m predicting that the Euro will be bullish (rising in value) while the US Dollar will be bearish (falling in value). In Forex trading, bullish simply means buy, and bearish means sell. Traders also often use the term “going long” to describe buying a currency pair.

In Forex trading, the term long means buy and is associated with a bullish market, while short means sell and is linked to a bearish market. To put this into context, when a trader says long, bullish, or buy, they are essentially saying the same thing. Likewise, when someone says bearish, short, or sell, they all carry the same meaning.

When it comes to currency codes, the concept is straightforward. The first two letters of a currency code typically represent the country’s name, while the last letter stands for the name of the currency itself. For example, USD = United States Dollar, and JPY = Japanese Yen.

For example, the code USD represents the United States Dollar, where US stands for “United States” and D stands for “Dollar.” Similarly, GBP refers to the British Pound, NGN is the Nigerian Naira, JPY is the Japanese Yen, CHF stands for the Swiss Franc (derived from Confoederatio Helvetica in Latin), AUD is the Australian Dollar, and NZD represents the New Zealand Dollar. This is how international currency codes are formed and standardized across the Forex market.

In fact, you’ve probably participated in Forex without realizing it—whenever you exchanged your home country’s currency for another while traveling abroad, you were already part of the foreign exchange process.

Think about it this way: whenever you travel or exchange money locally, you’ve already participated in Forex without realizing it. For instance, in Nigeria, if you meet an aboki (local currency exchanger), the first question he will ask is: “Do you want to buy or sell?” The reason he asks is simple—he needs to know which price to give you. If you’re buying, he’ll likely charge a higher rate, and if you’re selling, he’ll offer a lower rate. The difference between these two prices is his instant profit.

But there’s another way profit is made—through changes in exchange rates over time. Let’s say you sold $1,000 when the rate was $1 = ₦1, meaning you received ₦1,000 in return. Now, if the exchange rate shifts to $1 = ₦1,600, that same $1,000 would now be worth ₦1.6 million. That’s a massive profit made from price fluctuations.

On the other hand, if the Nigerian Naira had strengthened and the rate moved to $1 = ₦50, the exchanger would have taken a significant loss. This illustrates the risk and reward of trading currencies in the Forex market—profits depend on whether the value of a currency rises or falls over time.

This is why studying market trends is crucial in Forex trading. By understanding what’s currently happening in the market, you can better predict where prices are likely to move. The key rule is simple: never buy into a market that’s about to fall while you’re holding a position. Most successful traders make money by following the classic strategy of buying low and selling high—a concept I’ll be explaining step by step in this article.

How Does the Forex Market Work?

The Forex market operates 24 hours a day, 5 days a week—from Monday through Friday. This is possible because trading is driven by four major global sessions:

• London Session
• New York Session
• Asian Session
• Sydney Session

Each session begins at 8:00 a.m. local time in its respective financial hub, and when their banks open, the Forex market becomes active. This constant cycle keeps the market moving around the clock.

When Is the Best Time to Trade Forex?

The best time to trade is during periods of high volatility, when many traders are active in the market. Among all sessions, the London session dominates with over 30% of global trading volume, making it the financial hub of the world. This is often regarded as the most profitable time for traders due to the high liquidity and market movement.

Best Time to Trade Forex

The most profitable times to trade are during the London session, followed closely by the New York session. There’s also a period when these two sessions overlap, which is known as the London–New York overlap session. For traders in GMT +1 (like myself), this happens between 1:00 p.m. and 3:00 p.m. This overlap is considered the best time to trade because of the high volatility and strong liquidity in the market.

That said, you can still trade at other times, but trading during high-volatility periods allows you to enter and exit trades more efficiently, making it especially beneficial for beginners.

Which Currencies Should You Trade?

This brings us to one of the most important questions: what currency pairs should you focus on?

The recommended option for beginners is to trade the major currency pairs. These pairs are the most actively traded in the Forex market, which means tighter spreads, lower commissions, and higher liquidity.

Major Currency Pairs (7 total):

• EUR/USD (Euro / US Dollar)
• GBP/USD (British Pound / US Dollar)
• USD/CHF (US Dollar / Swiss Franc)
• USD/JPY (US Dollar / Japanese Yen)
• USD/CAD (US Dollar / Canadian Dollar)
• AUD/USD (Australian Dollar / US Dollar)
• NZD/USD (New Zealand Dollar / US Dollar)

These seven pairs are considered the backbone of the Forex market, making them ideal for beginners due to their stability, consistent volatility, and widespread use.

After these, there are also minor currency pairs, which I’ll explain next.

Minor Currency Pairs

Minor currency pairs are simply Forex pairs that do not include the US Dollar (USD). Instead, they consist of crosses between other major currencies. For example:

• GBP/JPY (British Pound / Japanese Yen)
• GBP/AUD (British Pound / Australian Dollar)
• GBP/CAD (British Pound / Canadian Dollar)
• GBP/CHF (British Pound / Swiss Franc)
• CHF/JPY (Swiss Franc / Japanese Yen)

These are often called cross-currency pairs, and they include GBP crosses, AUD crosses, EUR crosses, CAD crosses, and NZD crosses, among others.

Exotic Currency Pairs

Exotic pairs involve currencies from less commonly traded or emerging economies combined with a major currency. Examples include:

• USD/ZAR (US Dollar / South African Rand)
• USD/NGN (US Dollar / Nigerian Naira)
• USD/SGD (US Dollar / Singapore Dollar)
• USD/MXN (US Dollar / Mexican Peso)

Exotic pairs are highly volatile and usually come with wider spreads, which is why beginners are advised to avoid trading them until they gain more experience.

Trading Metals and Other Instruments

Forex trading is not limited to currencies alone. Traders can also participate in metals and commodities. For instance:

• XAU/USD = Gold against the US Dollar
• XAG/USD = Silver against the US Dollar
• XPD/USD = Palladium against the US Dollar

These assets are widely traded in the Forex market and often serve as safe-haven investments.

Understanding Volatility in Forex

Earlier, we mentioned volatility—let’s break it down. Volatility simply refers to the level of activity in the market, measured by how many people are buying and selling at a given time.

• High volatility = when many traders are active, causing faster and larger price movements.
• Low volatility = when fewer traders are active, leading to slower price changes.

High volatility often presents better opportunities for profit but also comes with increased risk, which is why understanding it is essential for every Forex trader.

Understanding Volatility in Forex

Low volatility occurs when there are only a few buyers and sellers active in the market at a given time. It’s important to understand that volatility is largely driven by big market movers, not just small traders like you and me.

Who Participates in the Forex Market?

The Forex market is powered by some of the largest financial institutions in the world. Key participants include:

• Central Banks (e.g., the Central Bank of Nigeria)
• Major and Commercial Banks
• Brokers
• Hedge Funds
• Institutional Investors
• Speculators
• Individual Traders

It’s worth noting that individual traders account for less than 2% of the entire Forex market. So, if you believe the market is oversaturated with retail traders, think again. The truth is, retail traders do not have enough capital to move the market. With over $5 trillion traded daily, Forex is by far the largest financial market in the world—bigger than the New York Stock Exchange and London Stock Exchange combined, by more than 200 times.

Essential Tools to Start Forex Trading

The most important tool you need to begin trading Forex is a smartphone—which is likely what you’re using right now. With just your phone and internet access, you can open a browser, visit a trusted broker’s website, and create a trading account.

What Is a Forex Broker?

A Forex broker (or brokerage firm) acts as the middleman between you and the interbank market, where real currency trading takes place. Whenever you place a buy order, the broker matches it with a sell order, and vice versa. Without brokers, retail traders would have no access to the global currency market.

The Role of a Forex Broker

When you place a trade, your Forex broker matches your order with another trader’s opposite order—for example, your sell order is matched with someone else’s buy order. This process happens in the background, while the broker also provides you with essential tools such as leverage, fast execution, and secure transactions.

Think of a broker like your local bank. Just as you can’t send or receive money without a bank, you can’t enter or close trades without a broker. They act as the gateway between you and the global Forex market.

How to Register With a Forex Broker

Getting started with a broker is simple. All you need is your smartphone or computer:

1. Visit the broker’s official website.
2. Provide your email address and country of residence.
3. Create a secure password and confirm it.
4. Complete the registration form by confirming that you’re not a U.S. resident.

Note: Some brokers do not accept clients from the United States or Canada due to regulations. In such cases, alternatives like FXCM are available, or you may use international details if permitted.

Why a Regulated Broker Matters

Using a regulated broker is essential for safe trading. Reliable brokers provide:

• Access to leverage for larger trade opportunities.
• Fast deposits and withdrawals for seamless transactions.
• Regulatory oversight in recognized financial jurisdictions.

Just like traditional banks, regulated brokers require you to complete KYC (Know Your Customer) verification. Typically, you’ll need to submit two key documents:

1. Proof of identity (such as a passport or national ID).
2. Proof of address (such as a utility bill or bank statement).

This ensures your account is secure and compliant with financial regulations.

Step 1: Proof of Identity

To complete your broker’s KYC verification, you must provide a valid proof of identity. Any one of the following documents is acceptable:

• Passport
• National ID Card
• Voter’s Card
• Driver’s License

Submitting one of these documents is enough to prove that you are a real individual.

Step 2: Proof of Address

In addition to ID, you must also provide a proof of address. Commonly accepted documents include:

• Bank Statement (preferred option in Nigeria)
• Utility Bill (electricity, water, or gas)
• Credit Card Statement

The easiest option is often a bank statement that shows at least one transaction along with your full name and address. You can request this directly from your bank branch. Once submitted, your account will be verified and ready for trading.

Step 3: Create a Demo Account

After completing verification, you’ll gain access to your broker’s dashboard. The first step is to create a demo account—a practice account that allows you to trade with virtual funds before using real money.

1. Click on “Create Demo Account.”
2. Wait for the page to load.
3. Choose between a Standard Account or a Raw Spread Account.
4. While both are useful for practice, the Raw Spread Account is recommended for beginners as it provides tighter spreads.
5. Click on “Create Account.”

Step 4: Fund Your Demo Account

Once your demo account is created, the next step is to deposit virtual funds. Simply enter the amount you want to practice with and click “Deposit.” The funds will reflect instantly in your demo balance, allowing you to start practicing live trades in real market conditions—without risking your own money.

Understanding Demo Accounts in Forex Trading

Once you create your demo account, the broker automatically assigns you a balance—commonly $5,000 or $10,000 in virtual funds. Remember, these funds are not real money. They are called simulation or paper trading money, designed to let you practice trading in real market conditions without risking your actual capital.

• Any profits you make in a demo account are not real.
• Any losses you experience are also not real.
• However, both profits and losses reflect what could have happened if you were trading with real funds.

Sometimes, you may see multiple demo accounts under your profile (e.g., $5,000 and $10,000 accounts). This usually happens due to system errors or test re-registrations—it’s nothing to worry about.

If you’ve reached this stage, congratulations—you’ve successfully opened your demo Forex account and are ready to start practicing trades.

Next Step: Download MetaTrader 5 (MT5)

The next essential tool for trading is MetaTrader 5 (MT5). This is your trading terminal, the platform where you place buy and sell orders. MT5 is available on both desktop (Windows/Mac) and mobile (Android/iOS).

Since many beginners prefer starting on their phones, here’s how to get MT5 mobile:

1. Open your App Store (iOS) or Google Play Store (Android).
2. Search for “MetaTrader 5” or simply “MT5.”
3. Download and install the official app.
4. Once installed, you’ll use MT5 to connect to your broker and start practicing trades in your demo account.

How to Link Your Demo Account to MetaTrader 5 (MT5)

After downloading and opening MetaTrader 5 (MT5), the app may prompt you to “Open a New Account.” Do not do this. Instead, you need to sign in to your existing demo account from your broker.

Here’s how it works:

• Your broker’s platform (e.g., sasmarket.com) is where you deposit funds and withdraw profits.
• MetaTrader 5 (MT5) is the platform where you actually place trades.
• To start trading, you must connect (link) your broker account to MT5.

Step-by-Step Guide to Linking Your Broker to MT5

1. Open MT5 on your phone.
2. Go to Settings (bottom-right corner).
3. Tap the “+” icon to add a new account.
4. In the search bar, type and select your broker’s server (e.g., AS Markets).
5. Note: Your server name may differ depending on when you signed up.
6. Go back to your broker’s account page and copy your account number (e.g., 8254 for your $5,000 demo).
7. Copy your server name (e.g., AS Markets).
8. Paste both your Login (account number) and Password into MT5.
9. Tap Sign In.

That’s it! Your demo account is now successfully linked to MT5, and you can begin trading with your virtual balance.

Linking Your Demo Account and Understanding Withdrawals in Forex Trading

Once you have your login details—for example, account 82544—you simply paste it into MetaTrader 5 along with your password. If you’ve forgotten your password, you can easily reset it to something simple and secure. After updating your password, enter it, click Done, and your demo account (e.g., $5,000 balance) will appear.

From this point, every trade you place will reflect directly on your demo account:

If you incur a loss, your balance will decrease.

If you make a profit (for example, earning $1,000), your balance will increase from $5,000 to $6,000.

Important: Withdrawals are not possible on a demo account since demo money is not real. Withdrawals can only be made from a live trading account.

How to Open a Real Forex Account

To transition from demo to live trading, follow the same steps but choose “Create Real Account” instead of demo. You’ll be prompted to select an account type:

• Raw Spread Account (recommended for lower spreads).
• Leverage Plus Account (offers a 50% bonus on deposited funds).

After choosing your account type:

1. Click Deposit.
2. Select a payment method:

• BTC
• USDT (TRC20)
• Instant Bank Transfer

3. You can deposit in your local currency (e.g., NGN, Ghanaian Cedis, South African Rand) and it will automatically be converted into USD in your account.

How Withdrawals Work

When you’re ready to withdraw profits:

• Go to the Withdrawal section.
• Remember: Withdrawals must be made using the same method you used to deposit. For example, if you deposited via USDT, you must also withdraw via USDT.

This ensures smooth and secure transactions, just like any regulated banking system.

How to Withdraw Funds and Place Trades on MetaTrader 5

When making withdrawals in Forex trading, it’s important to use the same method you used to deposit.

• If you deposited via BTC, withdrawals must also be processed through BTC.
• If you funded your account with USDT, your withdrawals should be made in USDT.
• The same applies to bank transfers—deposit and withdrawal must match.

This rule ensures smooth and secure transactions.

Transitioning From Theory to Practice: Using MetaTrader 5

Before withdrawals can happen, you need to place trades and earn profits. Let’s now focus on the MetaTrader 5 (MT5) application, where actual trading takes place.

Key Components of MetaTrader 5

At the bottom of your MT5 screen, you’ll see four main components every trader must understand:

1. Quotes – Displays available currency pairs (e.g., EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USD/CAD). These include both major pairs and minor pairs.
2. Charts – Visual representations of price movements to help you analyze trends.
3. Trade – The section where you place, manage, and monitor your open trades.
4. History – A record of your past trades, profits, and losses.

Additionally, under Settings, you can log in to your account and customize chart preferences.

Switching to Advanced Mode

On the top left of your MT5 screen, you’ll find the mode option. Always keep it in Advanced Mode to access detailed market information.

On the top right, there’s a pen icon that allows you to edit and customize your trading view.

By understanding these core functions, you’ll be ready to navigate MT5 confidently and move from learning theory to actual trading practice.

How to Add, Remove, and Organize Currency Pairs on MetaTrader 5

When preparing to place a trade on MetaTrader 5 (MT5), you need to organize your trading pairs for easy access.

• If you want to reorder pairs (for example, moving USD/JPY higher on your list), simply drag it into position.
• To delete unwanted minor pairs such as NZD/CAD, GBP/NZD, EUR/NZD, or AUD/NZD, click the bin icon at the top right corner. This instantly removes them from your list.
• If you receive a trading signal for a pair that isn’t displayed (e.g., GBP/JPY), you can easily add it. Just search for the pair, tap the small green plus (+) icon, and it will appear at the bottom of your quotes list.
• To add commodities like Gold (XAU/USD), simply search for its code, tap the icon, and it will appear in your trading dashboard, ready for action.

How to Place a Trade on MetaTrader 5

Once your pairs are organized, you can begin trading. Let’s use Gold (XAU/USD) as an example:

1. Tap on the asset you want to trade (e.g., Gold).
2. Select Trade from the menu.
3. Enter your lot size on the first line of the order form.

Understanding Lot Sizes in Forex Trading

Lot size determines the value of your trade and directly affects how much you can profit—or lose—on a position.

• 0.01 (Micro Lot) → Smallest trade size, perfect for beginners.
• 0.10 (Mini Lot) → Medium trade size with higher exposure.
• 1.00 (Standard Lot) → Full contract size with significant potential profit or loss.

A lot size chart clearly shows the risk-to-reward levels for each contract size, making it easier to choose the right position based on your risk tolerance.

Understanding Lot Size and Pip Value in Forex Trading

In Forex trading, lot size determines how much you gain or lose for every pip movement in the market.

• 0.01 lot (micro lot) → You earn or lose $0.10 per pip.
• 0.10 lot (mini lot) → You earn or lose $1 per pip.
• 1.00 lot (standard lot) → You earn or lose $10 per pip.
• 10.00 lots → You earn or lose $100 per pip.
• 100.00 lots → You earn or lose $1,000 per pip.

What is a Pip in Forex?

A pip (short for percentage in point) represents the smallest price movement in a currency pair.

Think of it as a “step” the market takes.

• Example: If you trade with 1.0 lot size, every pip movement equals $10.
• If the market moves 10 pips in your favor, you gain $100.
• If it moves 10 pips against you, you lose $100.

This shows how lot size and pip value together determine your profit or loss.

Practical Example with a $5,000 Account

Let’s say you have a $5,000 trading account:

• Using 1.0 lot size, each pip is worth $10.
• If the market moves in your favor, your profit grows quickly.
• But if it moves against you, losses also increase at the same speed.

This balance between risk and reward is why choosing the right lot size is crucial for money management.

What is Stop Loss in Forex?

A Stop Loss (SL) is a protective order you place with your broker.

It tells the system to close your trade automatically if the price moves against you by a certain amount.

• It helps traders limit risk and avoid losing their entire balance.
• Example: If you decide you are “wrong” when price drops 30 pips, your Stop Loss will automatically exit the trade at that point.

Understanding Stop Loss and Take Profit in Forex Trading

One of the most powerful features in Forex trading is the ability to control your risk and lock in your profits before you even enter a trade.

What is Stop Loss (SL)?

A Stop Loss is an order you set that automatically closes your trade if the market moves against you by a certain amount.

• Example: You tell your broker, “Please close my trade once I lose $50, no matter what happens.”
• This allows you to predetermine your maximum risk per trade.
• That’s why Forex can be considered relatively safe compared to other businesses—because you always know your potential loss before trading.

What is Take Profit (TP)?

A Take Profit order works the opposite way of Stop Loss.

• If the market moves in your favor and hits your chosen target, the system automatically closes the trade.
• Your profit is then secured in your trading account, even if your phone is off or you’re not watching the market.
• Example: If you set a Take Profit at 50 pips, once the market reaches that level, your profit is locked in.

How to Place Buy or Sell Orders

When entering a trade, you have two main options:

• Buy (Long / Bullish) → You expect the price to rise.
• Sell (Short / Bearish) → You expect the price to fall.

You can set your Stop Loss and Take Profit at the same time before confirming your order.

Example Trade

Let’s say you open a Buy trade on Gold (XAU/USD):

• You set a Take Profit level without adding a Stop Loss (just for demonstration).
• The market moves in your favor, and you quickly gain $14 in profit.
• This shows how fast the market can reward you when you manage your orders properly.

Understanding Balance, Equity, Margin, and Leverage in Forex Trading

When trading Forex, your platform (like MetaTrader 5) shows several key metrics: Balance, Equity, Margin, and Leverage. Let’s break them down.

Balance

Your Balance is the total amount of money in your brokerage account.

• It does not change while a trade is running.
• It only updates once you close your trade, whether it’s a profit or a loss.

Equity

Your Equity is your Balance + current profit or loss from open trades.

• Example: If your balance is $5,000 and your current trade shows +$49, your equity becomes $5,049.
• Technically, Equity = Margin + Free Margin.
• In simple terms, Equity shows what your balance would be if you closed all trades right now.

Margin

Margin is the amount of money your broker locks as a security deposit to keep your trade open.

• It’s usually a small fraction of your total trade size.
• Example: To trade 1.0 lot, you would normally need 100,000 units of the base currency.
• But since you only have $5,000, you can’t cover that full amount on your own.

Leverage

This is where Leverage comes in.

• Leverage allows you to control a much larger position with a smaller account size.
• For example, with 1:100 leverage, your $5,000 can control up to $500,000 worth of trades.
• This makes Forex accessible, but it also increases your risk if the trade goes against you.

What is Leverage, Margin, and Free Margin in Forex Trading?

Leverage and margin are two of the most important concepts every Forex trader must understand. They determine how much capital you need to open trades and how much risk you are exposed to. Let’s break it down step by step.

Leverage

• Leverage is the money your broker temporarily lends you so that you can trade larger positions than your account balance would normally allow.
• For example, when you place a trade, the broker covers 99.9% of the position size, and you only cover 0.1%.
• The 0.1% you provide is called the Margin, while the rest is covered by Leverage.
• Once the trade is closed—whether it’s a win or a loss—the broker automatically takes back their portion.

Example:

In this case, with leverage set to a relatively small level, the required margin was $3,425 for one standard lot trade. If higher leverage had been chosen, the margin requirement would have been lower, allowing more flexibility to open additional trades.

Margin

• Margin is your own money deposited as collateral to open a trade.
• In the example above, the margin required was $3,425.
• Margin requirements depend on your chosen leverage.
• Higher leverage = lower margin requirement.
• Lower leverage = higher margin requirement.

Free Margin

• Free Margin is the money left in your account after margin has been used for open positions.
• It represents the amount available to open new trades.
• Example: If $3,425 is used as margin from a $5,000 account, only the remaining balance is available as free margin for additional trades.

If you attempt to open another standard lot trade without enough free margin, you’ll receive an “Insufficient Funds” or “Not Enough Money” error message.

Margin Level (%)

• Margin Level shows the ratio of Equity to Used Margin (expressed as a percentage).
• It should never fall below 100%, otherwise your broker may trigger a margin call or close your trades automatically to prevent further losses.

Margin Call, Margin Level %, and the Importance of Stop Loss in Forex Trading

In Forex trading, understanding margin level percentage is crucial because it protects both you and your broker from excessive losses. Let’s break it down

What Happens When Margin Level Falls Below 100%?

• If your margin level percentage drops below 100%, your broker will trigger what’s known as a Margin Call.
• During a margin call, the broker will automatically close the trade with the largest loss to protect the borrowed funds they provided.
• If losses continue, other trades will also be closed until the account is fully liquidated.

Remember: Your broker lends you up to 99.9% of the trade size as leverage. Their priority is to protect that money.

Why Brokers Enforce Margin Calls

• Brokers use margin calls as a risk management mechanism.
• If you ignore notifications (emails, prompts in your MetaTrader 5 app, etc.), your broker assumes you’re not monitoring your trades.
• They will then close all positions, reset your account to $0, and reclaim their portion of the money.
• The good news: You don’t owe the broker, and the broker doesn’t owe you. Both sides walk away clean.

Reading a Trade on MetaTrader 5

Even if you weren’t present when a trade was opened, you can still interpret it:

• Example: A trade might show “Buy 1” on XAU/USD (Gold).
• Entry price: 3427.36
• Current price: 3427.20 (keeps fluctuating)
• Profit/Loss: Displayed live next to the trade.
• If no stop loss (SL) or take profit (TP) is set, both fields will appear empty.

Importance of Stop Loss and Take Profit

• Trading without a stop loss is highly risky.
• Stop Loss (SL): Protects your capital by closing a trade at a predetermined loss level.
• Take Profit (TP): Locks in gains automatically when the market hits your desired profit target.
• Always ensure you set both before entering a trade—it’s not just best practice, it’s essential for long-term survival in Forex.

Forex Quotes, Spread, and Chart Basics Explained

In Forex trading, one of the most critical rules is this: never leave the Stop Loss (SL) field empty. Always set your SL before entering a trade—it’s your safety net. Many beginners overlook this step, but it can mean the difference between a controlled loss and blowing up an account.

Understanding Forex Quotes: Bid & Ask Price

When looking at a trading platform, you’ll notice constantly changing numbers. At first, these figures might feel overwhelming, but in reality, they’re quite simple:

• Bid Price (Sell Price): The price at which you can sell.
• Ask Price (Buy Price): The price at which you can buy.

This is just like visiting a money exchanger (the “Aboki” example):

• If you want to buy, you get the higher (ask) price.
• If you want to sell, you get the lower (bid) price.

What is the Forex Spread?

• Spread = Difference between the bid and ask price.
• Example: If EUR/USD is quoted as 1.15090 / 1.15107, the spread is the difference between those two values.
• Brokers make money from this spread.

When you buy, you enter at the higher price. When you sell, you enter at the lower price. Profit only starts once the market moves in your favor beyond the spread.

Market Colors: Red vs. Green Candles

Many beginners assume:

• Red candles = bad
• Green candles = good

This is not always true. It depends on whether you are buying (long) or selling (short):

• If you’re buying (long), green candles going upward are good.
• If you’re selling (short), red candles dropping downward are good.

So, the color only tells you the direction, not whether you’re winning or losing.

Introduction to Charts

By clicking on the chart tab in your trading platform, you can see your trades in real time.

For example, if you’re trading XAU/USD (Gold) and currently in a buy position, the chart will clearly display your entry point and price movements.

How to Set Stop Loss and Take Profit in Forex Trading

When you place a trade without a Stop Loss (SL) or Take Profit (TP), you leave your position unprotected. This is risky, as the market can move against you at any time. Let’s break down how to correctly set both on your trading platform.

Step 1: Identify Stop Loss Level

To place a stop loss, you first need to analyze the chart. On mobile trading platforms, you can use the crosshair tool:

1. Select the crosshair icon.
2. Move it to the price level where you want your stop loss.
3. For example, let’s say you decide on 3415.08.
4. Swipe, tap on the pencil/edit icon, and enter 3415.08 in the Stop Loss field.
5. Click Modify.

Now, if the market drops to this level, your trade will automatically close—limiting your loss. On the chart, this will appear as a red line labeled “Stop Loss.”

Step 2: Identify Take Profit Level

Since in this example you’re placing a buy trade (long position), your profit comes when the market goes up.

1. Decide at what point you’re satisfied with profit.
2. For instance, set Take Profit at 3461.55.
3. Enter this number in the Take Profit field (green line).
4. Click Modify.

Now, when the price reaches that level, your broker will automatically close the trade and secure your profit—even if your phone is off.

Mobile Tips (Android & iOS)

• On Android, the Stop Loss field is usually underlined in red, while the Take Profit field is underlined in green.
• The process works the same on both iOS and Android apps.

Why Stop Loss and Take Profit Are Essential

• Stop Loss = Protects you from unlimited losses.
• Take Profit = Locks in gains when the market hits your target.
• Both ensure you trade with discipline and avoid emotional decisions.

How to Use Stop Loss, Take Profit, and Time Frames in Forex Trading

When setting up a trade in Forex, the placement of your Stop Loss (SL) and Take Profit (TP) depends on whether you are buying or selling:

For a Buy Trade (Long Position):

• Take Profit (TP): Above your entry price (top of the chart).
• Stop Loss (SL): Below your entry price (bottom of the chart).

For a Sell Trade (Short Position):

• Stop Loss (SL): Above your entry price (top of the chart).
• Take Profit (TP): Below your entry price (bottom of the chart).

This way, if the market moves against your trade, your loss is limited, and if it moves in your favor, your profit is secured.

Understanding Time Frames in Forex Charts

Each candlestick on your chart represents a specific time frame:

• M1, M5, M15 → 1, 5, or 15 minutes per candle.
• H1, H4 → 1 hour or 4 hours per candle.
• D1 → Daily candlesticks (1 day each).
• W1 → Weekly candlesticks (1 week each).
• MN → Monthly candlesticks (1 month each).

As a day trader, the most commonly used time frames are:

• M15 (15 minutes)
• H1 (1 hour)
• H4 (4 hours)

These allow you to analyze market trends effectively and execute trades with better precision.

Customizing Your Forex Chart

If your chart colors don’t look like the standard blue and red candles, you can adjust the chart settings in your trading platform. This makes it easier to interpret price movements and stay consistent with professional trading strategies.

How to Set Up Charts and Place Trades on Your Trading Platform

To get started, open the Settings menu at the bottom-right corner of your trading app. From there, select Charts—this is where you configure your chart settings. Take a screenshot of your settings and make sure everything you toggle on or off matches exactly with the recommended setup. Next, go to Colors to adjust the chart’s appearance. By replicating these settings, your chart will display the same way as shown in this tutorial.

Now, let’s move on to placing trades. If you prefer, you don’t have to navigate to the Quotes section—you can open a trade directly from your chart screen. Simply click the plus (+) icon at the top-right corner. This allows you to set your lot size, for example, 0.01 lots, and then choose Buy or Sell.

Once the trade is placed, you can set your stop loss (SL) and take profit (TP) levels to manage risk. For example:

• Stop Loss: 3415.08
• Take Profit: 3461.55

To apply these, just tap the trade, select Modify, and enter the values. Always remember—this demonstration is for learning purposes only. The focus here is on how to execute and manage trades, not whether the trade will be profitable.

By practicing these steps, you’ll learn how to:

• Adjust chart settings for clear analysis.
• Place trades directly from your chart.
• Set stop loss and take profit levels to manage risk effectively.

This step-by-step approach helps beginners get comfortable with forex trading platforms, making it easier to analyze markets and execute trades confidently.

Learn How to Use Trading Platforms and TradingView for Market Analysis

The purpose of this guide is to help you understand how trading platforms work. For example, when closing trades, you don’t always need to exit them one by one. By selecting the B operation or tapping on the checkmark icon, you can close multiple positions at once—whether at profit or loss. In this case, my balance dropped to $4,994.88, showing a loss of $520 recorded in the trading history. This is how trade history helps you track performance in real time.

Now, let’s move to analysis. One of the best tools for market analysis is TradingView. This platform, available at tradingview.com

, allows traders and investors to analyze almost any financial instrument.

On TradingView, you can access detailed charts and technical analysis for:

• Stocks: Apple, Tesla, Microsoft, Coca-Cola, and more.
• Forex pairs: EUR/USD, GBP/USD, GBP/JPY, GBP/ZAR, etc.
• Commodities & Metals: Gold (XAU/USD), Silver (XAG/USD), Platinum, and others.
• Indices: US30, US100 (Nasdaq), S&P 500, UK100, DAX30, and more.
• Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and many others.

With TradingView, you can perform technical analysis, follow real-time price movements, and create strategies across forex, stocks, indices, metals, and crypto—all in one place.

Simply visit tradingview.com, open your preferred chart, and start analyzing markets like a professional.

How to Use TradingView for Market Analysis and Chart Tools

When you visit TradingView.com, hover over “Products” and select “Super Charts.” TradingView is the popular charting platform you often see traders share on Twitter, Telegram, and Instagram when they post their trade ideas. This tool is mainly used for market analysis and idea sharing—for example, announcing “I’m buying Tesla,” or “I’m going long on GBP/USD or EUR/USD.”

Important note: You don’t place trades directly on TradingView (unless your broker is connected). Instead, you analyze the charts on TradingView and then execute trades separately on your trading platform such as MetaTrader 5 (MT5).

TradingView Tools and Features

On the left-hand side of the TradingView chart, you’ll find a wide range of charting tools. For example:

• Crosshair tool – great for checking exact price points.
• Trend lines – to identify market direction.
• Horizontal lines & rays – used for marking support and resistance levels.
• Drawing tools – such as arrows, dots, and even the “magic wand” for advanced visuals.

You can expand each section by tapping the tiny arrow icon to explore more tools. These features allow you to draw directly on charts, highlight key levels, and make your analysis clear—exactly like the annotated charts you often see traders post online.

The most commonly used tool is the Crosshair, but you’re encouraged to experiment with trend lines, horizontal lines, and arrays to improve your analysis skills.

With TradingView, you not only gain access to professional-grade charting but also a platform to share your trading ideas with others.