Forex trading involves trading currency pairs, such as EUR/USD, where one currency is exchanged for another. Traders speculate on whether a currency will appreciate (strengthen) or depreciate (weaken) relative to another.

Currency pairs represent the value of one currency relative to another. They are categorized into:

• Major pairs: USD included (e.g., EUR/USD).
• Minor pairs: USD excluded (e.g., EUR/GBP).
• Exotic pairs: One major currency paired with an emerging currency (e.g., USD/TRY).

A pip (percentage in point) is the smallest price movement in forex trading, usually the fourth decimal place in a currency pair’s price.

The forex market operates 24/5, starting with the Asian session (Tokyo), followed by the European session (London), and ending with the American session (New York).

Leverage allows traders to control a larger position with a smaller amount of capital. For example, a 1:100 leverage means you can control $10,000 in trades with $100. While it increases potential profits, it also amplifies risks.