What this section covers
Trading basics are the terms and mechanics behind every trade: what you are trading, how a position is sized, what it costs, and when the market is open. This section explains them in the order a beginner needs them. Each page builds on the one before it.
Forex is the market where currencies are exchanged. A currency pair such as EUR/USD shows the price of one currency in another. Most retail traders do not buy the currencies themselves. They trade CFDs (contracts for difference), which are agreements to settle the change in price. The pages also cover metals, indices and energies, which are traded the same way.
Leveraged CFD and forex trading can lose money fast, sometimes more quickly than a beginner expects. Learning the basics does not make trading safe or profitable. It helps you understand what you are risking before you risk it.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
How to use the section
The full list of pages appears below this text in reading order, with markers showing your progress. You can read straight through or jump to a topic.
If you are new
Start with What is forex and What is a CFD. Then work through the core units in this order:
- What is a pip: the smallest standard price step and how profit and loss are counted.
- What is a lot: the unit that sets the size of a position.
- What is leverage: trading a larger position than your deposit would allow on its own.
- What is margin: the part of your money held as security while a position is open.
After these, read about order types, starting with Market orders and Stop loss. Then move to costs, beginning with What is spread, and to market hours in Trading sessions.
The path ends with First demo trade. A demo account uses virtual money, so you can place and close orders without risking your savings. Practise there until the mechanics feel routine.
If you already trade
Experienced traders can use the section as a reference. The pages go into details that matter in live trading:
- how margin level, margin call and stop out interact, in What is stop out;
- why fills differ from the price on screen, in Slippage and Price gaps;
- the full cost of holding a position, including swap and commission, in Total trading costs;
- how quote currency and account currency affect results, in Profit and loss.
Where a page involves a calculation, it links to the matching tool in Calculators, so you can check your own numbers instead of relying on examples.
Before you open a live account
Basics include knowing the rules where you live. In Pakistan, per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan. Also, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947. Finally, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Regulation and Safety before you send money anywhere.
It also helps to read Why traders lose and Risk management early, not after the first losing trade.
Where to go next
When the basics are clear, continue with Technical analysis, Fundamental analysis or Trading psychology. If a term is unfamiliar at any point, look it up in the Trading glossary.
Frequently asked questions
Where should a beginner start?
Start with What is forex, then follow the reading order shown below this text. Pip, lot, leverage and margin come before order types and costs.
Do I need money to learn forex trading?
No. You can read the whole section and practise on a demo account with virtual funds. A demo shows how orders work. It does not show how you react when real money is at stake.
Is forex trading a way to earn income?
No. Leveraged trading carries a high risk of loss, and many retail traders lose money. Treat this section as education, not as a route to income.
Are these pages about a specific broker?
No. The basics apply to forex and CFD trading in general. Conditions at any particular broker should be checked on that broker's official site.
How long does it take to learn the basics?
It depends on your pace. Read one topic at a time, test it on a demo account, and move on only when it is clear.