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Foundations of Forex Trading
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Foundations of Forex Trading

May 2, 2026
Pairs, pips, lots, and leverage — the core mechanics behind every forex position.

Forex trading is built on a handful of core mechanics — pairs, pips, lots, and leverage — that every serious trader needs to understand before sizing a position.

Reading a Currency Pair

  • The base currency is quoted first, the quote currency second
  • Price shows how much of the quote currency buys one unit of the base
  • Major, minor, and exotic pairs carry very different liquidity profiles