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Forex Basics: Pairs, Pips and Sessions

How the decentralized currency market actually works: pairs, pips, lots and pip value, the four sessions and their overlaps, spreads, swaps, leverage and stop-outs, what moves currencies, and a plain session-based plan for a beginner trading two or three pairs on micro lots.

Module 1: How the FX market works

A decentralized dealer market with no central tape, why quotes differ by broker, and what regulation does and does not protect you from.

  1. A market with no exchange8 min
  2. Interbank versus retail9 min
  3. Dealers, ECN and STP9 min
  4. Regulation by jurisdiction10 min

Take the module quiz

Module 2: Pairs, quotes and pips

Base and quote currencies, majors, minors and exotics, pips and pipettes, lot sizes, and how to compute pip value in your account currency.

  1. Base and quote8 min
  2. Majors, minors and exotics8 min
  3. Pips, pipettes and the spread9 min
  4. Lots and pip value11 min

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Module 3: Sessions and liquidity

Sydney, Tokyo, London and New York, the overlaps where volume lives, typical ranges by pair, news times, weekend gaps and the 5pm ET rollover.

  1. The four sessions9 min
  2. Overlaps and session ranges9 min
  3. News times, weekend gaps and rollover10 min

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Module 4: Costs and mechanics

Spread versus commission, swap and carry, leverage and margin with worked numbers, stop-outs, slippage, requotes and negative balance protection.

  1. Spread versus commission9 min
  2. Swap, carry and triple-swap Wednesday10 min
  3. Leverage, margin and stop-outs11 min
  4. Slippage, requotes and negative balance protection9 min

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Module 5: What moves currencies

Interest rate differentials, the central bank calendar, how CPI and NFP move price, risk-on and risk-off, commodity currencies, the dollar at the center and correlations between pairs.

  1. Interest rate differentials9 min
  2. Central banks and the calendar9 min
  3. CPI, NFP and risk-on, risk-off10 min
  4. The dollar at the center, and correlations between pairs10 min

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Module 6: A beginner's approach

Pick two or three pairs and one timeframe, write a session-based plan, size from the risk course, go demo then micro lots, and vet brokers and gurus before trusting either.

  1. Choosing pairs and timeframes8 min
  2. A simple session-based plan10 min
  3. Sizing, demo, then micro lots9 min
  4. Red flags in FX gurus, signal groups and brokers10 min

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Educational content, not financial advice.