Forex guides
Guides are grouped by the idea people search for: pips and lots, margin and risk, costs, orders, and market hours.
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Essential guides
Short pages that answer one search question, then point to the matching calculator.
Pips and lots
What is a pip in forex?
A pip is the conventional small increment in a currency pair’s quoted price.
Pips and lots
What is a lot in forex?
A lot is the size of a forex position, not leverage and not a profit unit.
Pips and lots
How pip value is calculated
Pip value is the cash change for a one-pip move. It is computed in the quote currency first, then converted only if the account currency differs.
Margin and risk
What is margin in forex?
Margin is collateral reserved so a leveraged position can stay open. It is not a fee and not the loss if price moves against you.
Margin and risk
Leverage and margin
Leverage is a ratio; margin is the cash reserved. Higher leverage lowers required margin on the same position.
Trading costs
Forex trading costs
A forex trade’s usual costs are the spread, any commission, overnight financing if held past rollover, and conversion when currencies differ.
Trading costs
What is the spread?
In Forex trading, the spread is the difference between the bid price and the ask price of a currency pair.
Orders and execution
Market, limit, and stop orders
A market order fills now at the available price. A limit waits for a price at least as good as the level you set. A stop stays inactive until a trigger trades.
Market hours
Forex market hours
The forex market operates on a 24-hour basis during weekdays, but it is important to note that it is not open 24/7.
Currency pairs
Currency pairs
A currency pair prices one currency in another. In EUR/USD the euro is the base and the US dollar is the quote.