You want to know What is Forex trading?;
Don't worry, in this guide forex for beginners all your questions will be answered.
In summary, what you will learn in this article:
- Τι είναι το Forex trading
- How to start Forex
- How to get out money from Forex
- Lessons for Forex trading
- Is Forex a scam?
Let's go straight to the guide.
Table of Contents
What is Forex Trading?
Certainly if you are looking for What is Forex trading? You will have seen many opinions.
In short, the Forex Trading or else foreign exchange market, is process of buying and selling currencies for profit.
The word Forex comes from Foreign Exchange, that is, the exchange of foreign currencies.
History of Forex Trading
The foreign exchange market, as we know it today, officially started in 1971 with the Bretton Woods Agreement.
However, before this agreement, currencies worldwide were pegged to gold.
The 1971, the fixed exchange rate system collapsed, and currencies began to trade freely in the market, with exchange rates determined by the special offer and demand.
Since the 1990s until today came the digitization of Forex, making it accessible to private investors through online platforms (Forex Broker).
Worth Dealing With Forex;
The Forex Trading It is one of the most popular markets for investors and traders.
However, many wonder if it's worth bothering with.
Whether it's worth it or not depends entirely on you, because many people choose to deal exclusively with stocks and others exclusively with cryptobodies.
So what you should do is see what suits you.
Now what most people do is that choose 2 forex pairs for example EUR/USD and at the same time they also deal with cryptocurrencies and stocks.
Basic Concepts in Forex
After you have understood What is Forex? Let's go now, let me show you her. basic concepts in Forex trading which you should know.
Currency pairs
In forex, all transactions will be made with currency pairs, below you will see examples of pairs.
The first coin it is called Base Currency and the second Quote Currency.
| GBP / JPY | British Pound / Japanese Yen |
| EUR / USD | Euro / Dollar |
| USD / CHF | Dollar / Swiss Franc |
Pips (Percentage in Points)
Now let me show you what Pips are because many people can't understand. What exactly are pips?
The pip is the smallest unit of price movement in a currency pair.
For most couples, 1 pip equals 0.0001 (fourth decimal digit).
For example EUR/USD from 1.1050 to 1.1055 has become a increase 5 pips.
Leverage
If you have dealt with cryptocurrencies or leverage It's a little different.
If you don't know what leverage is, remember that in a nutshell it allows you to you control larger positions with less capital.
For example, if you have leverage 1:100, and you have 100€, you can open value transactions 10.000€.
However, as useful as leverage is, it is also risky, so before you do signals Especially at the beginning you will be at the lowest risk.
Lot Size
The lot is the unit of measurement of the quantity of a currency.
| 1 standard lot | 100.000 units |
| 0.1 lot (mini lot) | 10.000 units |
| 0.01 lot (micro lot) | 1.000 units |
For example, if you open a position 0.01 lot (micro lot) in EUR / USD, you buy 1.000 units of the base currency, that is 1.000 euro.
Now if you open a position 1 standard lot in EUR/USD, you buy 100.000€.
It's good that at the beginning when you trade you will open everything with 0.01 lot
Stop Loss & Take Profit
Stop loss and take profit are two essential orders. Whenever you open a new position, you must have an order in place. take profit about where you will take profit but also where you will close the trade you have taken at a loss, stop loss that is.
- Stop Loss (SL) – The order that automatically closes a trade when the loss reaches a predetermined level.
- Take Profit (TP) – The order that closes a trade when a predetermined profit is reached.
How to Start Forex Trading
To start doing forex trading you should first find one reliable Forex broker such as
Then you will need to find the appropriate education this could be lessons in YouTube or you can find specialized courses that are paid.
What you need to understand is that learning forex signals wants enough time and that it is not an easy process.
How to Make Money from Forex
The Forex Trading is a way to make money from fluctuations of currency exchange rates.
Below you will see ways & examples about how a trader can make money from Forex.
For example, if you are swing trader and you hold positions for days or weeks to make money, you should have found a strategy that suits you.
Example
If You Buy USD / JPY at 145.00 and you hold it for a week and sell it at 147.50 your profit will be 250 pips, if you have placed a position with 1 lot 150 pips x $10 (Each pip) = $2.500.
Free Book on Forex Trading
If you want to learn more information about the forex market, you can download the following free PDF.
On this free ebook for trading you will learn everything you need about fundamentals, if you want to become a trader:
Now let's go show you some trading lessons.
Forex trading courses
Generally it is good. before you start forex trading take classes either for free or for a fee.
The thing is, there are thousands of options out there that most courses are almost all the same and it really is a waste of money.
To choose to buy Forex trading courses What you should see are the Results.
Don't be influenced if you just see a guy with 2 Rolex watches and 2 rented Lamborghinis, you need to see real results to trust someone for the knowledge they can provide you.
Also, of course, your thoughts should match those of the person who will train you.
Forex Trading: It is Απάτη;
Forex trading it is not a scam.
These people are doing it for a living. hundreds of gurus who all they want to do is sell their lessons.
However, Forex has been done legally for many years by banks, investment companies, hedge funds, and even private traders.
Beyond trading and scam lessons, There are also profiles on the internet that want to scam you and steal your money.
Let's look at it in more detail below.
Forex becomes suspicious or a “scam” when:
- You are approached by strangers via Instagram/Telegram/WhatsApp and they promise you "sure profits".
- They ask you to deposit money on strange platforms.
- They promise 100% yield in a few days (if that were the case, everyone would be millionaires).
- There is no official regulation by any authority (such as CySEC, FCA, etc.).
If you are going to trade, you should only do so through certified platforms such as e.g.
If you enter without knowledge, it is very likely that you will lose money.
There are many scams in the name of trading, that's why keep your money safe and don't invest in "opportunities" that seem too good to be true.
Disadvantages of Forex Trading
Now let me show you the disadvantages of forex:
- High risk: Because of leverage, you can lose all your capital quickly, so you shouldn't take any risks.
- Unpredictable purchases: Forex markets are affected by economic announcements, geopolitical events and newsFor this reason, you should not trade when there is hot news.
- Emotional pressure: Rapid price changes can lead to bad decisions.
- Requires experience & training: Forex is not a way to make easy money, it needs strategy and personal time. So you may need to dedicate more than a year to learning.
Advantages of Forex Trading
- Open market 24 hours, 5 days a week: Forex works 24 hours a day, from Monday to Friday.
- High liquidity: There are always buyers and sellers.
- Low transaction costs: There are no commissions as in stock exchange, but it exists spread.
- Leverage: Allows traders to manage larger positions with less capital.
- Internet access: Anyone can get started with a computer or smartphone, as long as they have Internet.
Forex Companies
To start trading you should find one reliable Forex broker.
If you want to see a detailed guide on how to register, I have made a video on Youtube:
However, if you want to register with another Broker, the following are the things you should pay attention to:
- Regulatory Authority (e.g. CySEC, FCA): Ensures that the broker is regulated.
- Spreads & Commissions: The lower, the better for the trader.
- Trading Platform: e.g. MetaTrader 4/5, WebTrader, etc.
- Customer Support: Language, availability, reliability.
- Deposit/Withdrawal Methods: Banks, cards, crypto, etc.
Prop Firm and Forex Trading
In this category, it is one of the best ways to make Forex trading work in your favor.
What is Prop Firm Forex Trading?
A Prop Firm (Proprietary Trading Firm) is a company that gives you capital to trade, after you first pass a test or challenge.
That is:
- You don't need to risk your own money..
- Are you trading with company capital.
- If you are profitable, you share the profits (usually 80-90% yours).
How Prop Firm Forex Trading Works
Initially you should choose prop firms such as FTMO.
Next, you should buy a trading package that costs approximately from $100 and if within 30 days earn +10% without If you lose more than 5% of your account, they will give you a funded account.
The capital is 5.000 €, 10.000 €, 50.000 €, 100.000 € or more.
Once you have completed the courses and are ready to trade with real money, trading with a prop firm is the best way to get started.
Forex or Cryptocurrencies: What is better?
Many people who want to start trading don't know what to choose, Forex or cryptocurrencies.
What I have to tell you is that both markets are excellent for trading, but in cryptocurrencies there is huge instability and great manipulation.
In contrast, the Forex market is high liquidity and there is huge volume of transactions something that makes it more difficult to manipulate.
Tips for Beginner Traders
If you are a beginner trader, it is important to learn the basics of Forex Trading before you start trading.
Here are some tips for beginner traders:
- Learn the basics: Learn how the Forex market works and how to trade.
- Train in a demo: Start with a demo account to practice trading without risking real money.
- Start with small transactions: Don't try to make a lot of money quickly. Start with small trades and increase your trade size as you gain experience.
- Manage the risk: It is important to manage your risk when trading.
My opinion on Forex Trading
I am dealing with Forex Trading for quite some time now and I can say that it is a place that combines excitement, knowledge and many challenges.
Forex teaches you discipline, strategy and self-control. If you don't follow a plan, the risk is great. I believe that with the right training, composure, and a proven strategy, one can make good money, not easily, but consistently.
Disclaimer:
What we mention on the website Bitsounisproject is for educational and entertainment purposes, does not constitute investment advice.
The above links to the services mentioned may be affiliate links.
