THE WEALTH HUB ACADEMY FOREX BEGINNER'S COURSE OUTLINE
1.) INTRODUCTION TO FOREX
 What is forex ✅

What we do in forex✅

How does foreign exchange market works✅
1b.) FOREX MARKET SESSIONS✅
1c.) THINGS YOU NEED AS A FOREX TRADER✅
2.
)FOREX TERMINOLOGIES

Currency✅

Currency pair ( classes and type)✅

Pip and Pipette( pips calculations)✅

Long/Short✅
3.) ADVANCED TERMINOLOGIES
 Lots and lot Sizes✅

Margin✅

Free Margin✅

Leverage✅

Equity✅

Take Profit and Stoploss✅

Order and Order Types✅

Bid and ask price✅

Spread✅
1. INTRO TO FOREX BY ODOWUFX{THE WEALTH HUB ACADEMY}
Foreign exchange trading—also commonly called forex trading or FX—is the global market for
exchanging foreign currencies.
Forex market involves buying and selling currencies with the goal of making a profit from the
fluctuations in exchange rates.
It is a decentralized network of buyers and sellers, that allows individuals, institutions &
businesses to convert one currency into another for a variety of different reasons.such as
commerce, tourism or just pure speculation.
Unlike stocks or commodities, there's no central exchange for trading forex. Instead.currencies are
traded via an electronic global network of banks, dealers and brokers.
As a result, the FX market is open 24 hours a day, 5 days a week, only closing down on the weekend.
Currencies are traded worldwide in four major financial centers in different time zones:
London, New York, Sydney, and Tokyo. We will explain in details alongside.
The FX market is the largest, most liquid market in the world with a staggering average daily
trading volume exceeding $6.6 trillion. All of the world's stock markets combined do not even
come close to this (entire US Stock Market only $0.25 trillion daily volume).
.What is traded on the Foreign Exchange Market…
Forex.
Forex trading is the simultaneous buying of one
currency and the selling of another. Currencies are traded through a broker or
dealer, and are traded in pairs; for example the Euro dollar and the US dollar
(EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).
Because you're not buying anything physical, this kind of trading can be confusing.
Think of buying a currency as buying a share in a particular country.
When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy,
as the price of the currency is a direct reflection of what the market thinks about the current and
future health of the Japanese economy.
Before I proceed to Forex session...In summary
Forex is a foreign exchange Market where you have access to make money through buying and
selling of currencies pair...
Example of how we make money trading forex
The object of Forex trading is to exchange one currency for another in the
expectation that the price rate will change, so that the currency you bought will increase
in value compared to the one you sold.
Example 1.
BUYING EURO/USD
You BUY/purchase 10,000 euros at the EUR/USD exchange rate of 1.18...in the morning
10,000EUR x 1.18 = 11, 800$
Knowing that they might likely be increase in USD rate during the day.
Maybe later in the evening the EUR/USD exchange rate is now 1.30..
And you want to exchange/SELL your 10,000 Euros back in US dollars at the current rate of 1.30
10,000eur x 1.30 =13,000$
13,000$ - 11,800$
=+1,200$ profit
You just earn a profit of 1,200 ..
Just Buying and selling of currencies pair at different exchange rate
Let use another example you might be familiar with…
Example 2.
NGN/USD (Naira/Dollar)..
Let say the current exchange rate is #500/$
You purchase 5,000$ at rate of 500# in the morning
5,000$ x 500 = 2.5m
And the next day exchange rate now increase to #550/$
You can now exchange back your 5000$ to Naira to make profit
Which is5000$ x 550 =# 2,750,000
#2,750,000 - 2,500,000
= #250,000
That is 250k profit.
1b.
Forex market sessions
The forex Market runs 24 hours and 5days a week...
From Sunday evening till Friday night. But on different session..
Now why different session? The REASON:
Do you know OR agree with me that when we're morning here in Nigeria, in some countries we're
they might likely be in their afternoon, evening or night.
Do you agree with that? yes I agree with that absolutely
So Has their time of business will differ from us here..Business Time here in Nigeria majorly is 8am to
4pm or so.
So that's why we have forex market session.We 4 major trading session...
1.) Sydney session
2.) Tokyo session
3.) London session
4.) Newyork session
This is the session when forex market opens and closes.
1. ) Sydney Session: this is the first market session that opens on Sunday by 10.00pm ( after the
weekend break) and closes by 6am. This session tells you that the forex market closes by 10pm
every Friday and opens back by 10pm ,every Sunday.
2.) Tokyo Session: this is the next session that opens and overlap with the Sydney session. This is
the reason why some traders always merge these two sessions and call it Asian Session. This
session opens by 1am and closes by 9am. This means Tokyo overlap with Sydney at 1am
N.B: The Sydney and Tokyo Session is sluggish, market doesn't really move much during this period.
3.) London Session: this is the next session that open after the Tokyo session closes and this session
is believe to be a very busy session, as market tends to be more volatile. because there is lot of
liquidity in the market during this session. Note that what drives the market is Liquidity. liquidity is
what makes the market moves so much. Hence, this session is volatile, because of much liquidity
it posseses.
It opens 8am to 4pm
3. ) New York session: this is the next session after the London session. This particular session
overlap with the London session at 1pm which means NY session opens at 1pm and closes at 10pm.
Market is most volatile during the session overlap, between the London and newyork session.
THINGS YOU NEED AS A FOREX TRADER
1.) Charting platforms ( Trading view)
2.) A device/ Computer/ Laptop/ Monitor
3.) Trading Journal/ Trading Book record.
4.) Trading Broker
5.) Trading platform apps ( Mt4/Mt5)
6.) You also need your Time , Trading requires your time and effort.
You have to put in the work to be successful in this industry. No food
for lazy man.
Download trading-view app And mt5 , As we proceed, I will
teach you how to use mt5 and tradingview... for now let's
proceed
2. FOREX TERMINOLOGIES
.CURRENCY
The most popular currencies along with their symbols, country and
currency.
USD ---United States ----Dollar
EUR---- Euro members ----Euro
JPY----- Japan -----Yen
GBP----- Great Britain---- Pound
CHF---- Switzerland ----Franc
CAD ----Canada -----Dollar
AUD ----Australia ----Dollar
NZD---- New Zealand ----Dollar
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY.
The reason they are quoted in pairs is because in every foreign
exchange transaction you are simultaneously buying one currency and
selling another.
Here is an example of a foreign exchange rate for the British pound
versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base
currency (in this example, the British pound),
while the second one on the right is called quote currency (in this
example, the U.S. dollar)
When buying, the exchange rate tells you how much you have to pay in units of
the quote currency to buy one unit of the base currency.
In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.
EXAMPLE 2.
Let use another you're familiar with.
NGN/USD
NGN/U.S dollar.
NGN is our base currency and dollar is our quote currency
You would buy the pair if you believe the base currency will appreciate (go up)
relative to the quote currency.
You would sell the pair if you think the base currency will depreciate (go down) relative to
the quote currency.
These are the 8major pairs
EUR/USD Euro zone / United States "euro dollar"
USD/JPY United States / Japan "dollar yen"
GBP/USD United Kindom / United States "pound dollar"
USD/CHF United States/ Switzerland "dollar swissy"
USD/CAD United States / Canada "dollar loonie"
AUD/USD Australia / United States "aussie dollar"
NZD/USD New Zealand / United States "kiwi dollar"
These are minor pairs
1. EUR/GBP – Euro/British pound
2. EUR/CHF – Euro/Swiss franc
3. EUR/JPY – Euro/Japanese yen
4. GBP/JPY – British pound/Japanese yen
5. CHF/JPY – Swiss franc/Japanese yen
6. AUD/JPY – Australian dollar/Japanese yen
7. CAD/JPY – Canadian dollar/Japanese yen
8. NZD/JPY – New Zealand dollar/Japanese yen
9. AUD/NZD – Australian dollar/New Zealand dollar
10. AUD/CHF – Australian dollar/Swiss franc
11. GBP/CHF – British pound/Swiss franc
12. CAD/CHF – Canadian dollar/Swiss franc
.Long and short
First, you should determine whether you want to buy or sell.
If you want to buy (which actually means buy the base currency and sell the quote currency),
you want the base currency to rise in value and then you would sell it back at a higher price.
In trader's talk, this is called "going long" or taking a "long position." Just remember: long =
buy.
If you want to sell (which actually means sell the base currency and buy the quote currency),
you want the base currency to fall in value and then you would buy it back at a lower price.
This is called "going short" or taking a "short position". Just remember: short = sell.
.Pip and pipette (pips calculation)
The most common increment of currencies is the Pip.
If the EUR/USD moves from
1.2250 to 1.2251, that is ONE PIP.
A pip is the last decimal place of a quotation.
The Pip is how you measure your profit or loss.
A pip is the unit of measurement used to denote a change in a currency pair’s value.
It can also be said to be the measurement of a currency pair movement. This tells us how
far a currency pair has moved.
Pip" is an acronym for percentage in point, or price interest point.
A pip is the smallest whole unit price move, that an exchange rate can make.
Most currency pairs are priced out to four decimal places and a single pip is in the last (fourth)
decimal place.
for example.....
the smallest pip unit a currency pair ( eg EUR/USD) can make/ move is 0.0001
0.0001 equals to 1 pip movement
0.0002 equals 1pip movement from 0.0001.
Do you understand that?
for example
if the price of Eur/USD is 1.5555 before , and it moved to 1.5556
how many pips has it moved ?
yeah, good!
1 pip!
another example
If the price of USDCAD was 1.0000 before, and it moved to 1.0005
how many pips movement is that ?
5pips
final example
if the price of Gbpusd was 1.0000 before and it moved to 1.0018
how many pips movement is that ?
You answer that.
….……………
3. ADVANCED TERMINOLOGIES
Lot size
Lot is volume (in form of a number) that determine how unit you're buying or selling
and how fast you’re going to make money in the forex market and vice versa to loss
Which means if your lot size is big, you make,or lose money very fast but if it is small, the way you
make and lose will be very low compared to using bigger lot size
Lots and lot size
A lot in the financial markets is the number of units of a financial instrument ( Currency
pairs/ stocks / commodities) bought on an exchange...
Understanding the relationship between pips and lot size WILL helps you so well in risk
management...
Pips is the change in number of a currency
While lot size tells you the units you're buying and how much you're making off it
We have 4 types of lot size..[LOT SIZE TABLE]
LOT SIZE
Standard lot size
Mini lot size
Micro lot size
Nano lot size
UNITS
100,000
10,000
1000
100
VOLUME
1
0.1
0.01
0.001
DOLLAR PIP
10$
1$
10CENTS
1CENT
Let say you analyse and have a positive view on GBPUSD..at the current price 1.0000 that it will buy
to 1.0018
That's 18pips right?
Yes 18pips
If it just move 18 without you buying you wouldn't make money..
The amount you will be making in this 18pips move depends
On how many units of the base currency you're buying.. which is in lot size.
1 standard lot refers to a volume of 100,000 units. So when you buy 1 lot of a Forex currency
pair(GBPUSD), that means you purchased 100,000 units from the base currency....
The USD value for 1lot in currency pairs is 10$ per pip's
In this case if you're buying with 1lot ..
You saying per pip move, you want to make 10$….understood?
So it successfully moved 18pips
You will be making 18pips x 10$(1 standard lot size)
180$ profit
LEVERAGE
Leverage is the use of borrowed money (called capital) to invest in a currency, stock, or
security. By borrowing money from a broker, you can trade larger positions in a currency. As
a result, leverage magnifies the returns from favorable movements in a currency's exchange
rate. However, leverage is a double-edged sword, meaning it can also magnify losses. It's
important that you learn how to manage leverage and employ risk management strategies
to mitigate forex losses.
There are several types of leverage that different broker gives to it client which include
1:50
1:100
1:200
1:500
1:1000
NB:There are even brokers that gives leverage of *1:unlimited*
Let say you have $1000 and you place a trade on EURUSD with mini lot of 0.1(i.e you are buying
10,000 units of EUR) .
At the time you placed/ enter the trade, the price of 1 EUR is 1.13000 then the amount of money
to buy EUR at that time will be $11,300.
(10,000 units X 1.13000) but meanwhile you got just $1000 in your account.
How come you are able to buy that $11,300 units with just $1000?
That is the power of leverage.....
In simple terms leverage is like amplifier…
MARGIN
Margin is the amount of money( that 0.25/0.5%/ 1%) you put down when you place trade.
Why margin?
Because the margin serve as a safety net for the broker
NB: whenever you place a trade, the margin will immediately be deducted from your trade( but
however it will not be remove yet, the balance will still be intact until you hit TP or SL.
What is SL and TP?
More explanation coming soon on it.
FREE MARGIN
This is the amount left after they’ve deducted the margin.
It is the amount remaining/ available to open new trade positions.
The broker will keep deducting your free margin ( remaining balance unused ) whenever
you open new trade positions.
After you've exhausted your free margin, it means you have exhausted all your trading
Capital and blown your account.
You will not be able to open or add more positions to your trade, until you deposit another
money.
EQUITY
Equity in Forex simply tells traders how much money they currently have when trading orders are
active. Equity equals trading balance +/- current profits or losses from active trades. Once all trades
are closed, the equity becomes a trading balance
TAKE PROFIT
This is an order that is sent to the broker ( Your broker ) , informing the broker to close a running
position or trade when price reaches a certain target in profit.
STOP LOSS
This is the order that is sent to the broker informing the broker to close a running
position or trade when price reaches certain price level in loss.
TP and SL tells us that Forex market is a market that helps you to predetermine your loss
and profit before you can even open any trade.
Order and order type
When you have reason to buy or sell at currency pairs, the action you take buying or selling is
known as Order..
Your interest in the market
ORDER TYPES
There are two different way you can enter the market
1.Market execution: this is the instant execution of trade with the current market price(CMP)
2. Pending order: this is the use of setting limit to execute trades. We have four different ways of
using pending orders.
We have limits and stops
a.) Buy limit
b.) sell limit
c.) Buy stop
d.) sell stop
Market order
A market order is an order to buy or sell at the best available price.
For example, the bid price for EUR/USD is currently at 1.2140 and the ask price is at 1.2142.
If you wanted to buy EUR/USD at market, then it would be sold to you at the ask price of
1.2142. You would click buy and your trading platform would instantly execute a buy order at
that exact price.
If you ever shop on Amazon.com, it's kinda like using their 1-Click ordering. You like the
current price, you click once and it's yours! The only difference is you are buying or selling
one currency against another currency instead of buying a Justin Bieber CD.
Limit Entry Order
A limit entry is an order placed to buy below the market or sell above the market at a
certain price.
For example, EUR/USD is currently trading at 1.2050. You want to go short if the price
reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at
which point you would click a sell market order), or you can set a sell limit order at 1.2070
(then you could walk away from your computer to attend your ballroom dancing class).
If the price goes up to 1.2070, your trading platform will automatically execute a sell order at
the best available price.
You use this type of entry order when you believe price will reverse upon hitting the price you
specified!
Stop-Entry Order
A stop-entry order is an order placed to buy above the market or sell below the market at a
certain price.
For example, GBP/USD is currently trading at 1.5050 and is heading upward. You believe price
will continue with its direction if it hit 1.5060. You can do either one of these things: sit
in front of your computer and buy at market when it hits 1.5060 OR set a stop-entry order at
1.5060. You use stop-entry orders when you feel that price will move in one direction!
Stop-Loss Order
A stop-loss order is a type of order linked to a trade for the purpose of preventing additional
losses if price goes against you. REMEMBER THIS TYPE OF ORDER.
A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss
order.
For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set
a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to
1.2200 instead of moving up, your trading platform would automatically execute a sell order
at 1.2200 the best available price and close out your position for a 30-pip loss (eww!).
Stop-losses are extremely useful if you don't want to sit in front of your monitor
all day worried that you will lose all your money. You can simply set a stop-loss
order on any open positions so you won't miss your basket weaving class or
elephant polo game.
Trailing Stop
A trailing stop is a type of stop-loss order attached to a trade that moves as price fluctuates.
Let's say that you've decided to short USD/JPY at 90.80, with a trailing stop of 20 pips. This
means that originally, your stop loss is at 91.00. If price goes down and hits 90.50, your
trailing stop would move down to 90.70.
Just remember though, that your stop will STAY at this price. It will not widen if price goes
against you. Going back to the example, with a trailing stop of 20 pips, if USD/JPY hits
90.50, then your stop would move to 90.70. However, if price were to suddenly move up to
90.60, your stop would remain at 90.70.
Your trade will remain open as long as price does not move against you by 20 pips. Once
price hits your trailing stop, a stop-loss order will be triggered and your position will be
closed.
Bid and ask price
The “bid “represents demand and the “ask” represents supply for an asset.
Bid price is the price you are demanding to get something at. It is your demand price.
The “ask” price is also known as the “offer” price.
Bid Price
The bid is the price at which the market is prepared to buy a specific currency pair in the forex
market. At this price, the trader can sell the base currency. It is shown on the left side of the
quotation.
For example, in the quote GBP/USD 1.8812/15, the bid price is 1.8812. This means you sell
one British pound for 1.8812 U.S. dollars.
Ask/Offer Price
The ask/offer is the price at which the market is prepared to sell a specific currency pair in the
forex market. At this price, you can buy the base currency. It is shown on the right side of the
quotation.
For example, in the quote EUR/USD 1.2812/15, the ask price is 1.2815. This means you can
buy one euro for 1.2815 U.S. dollars. The ask price is also called the offer price.
SPREAD {transaction cost}
SPREAD is the difference between the buy (ASK) and sell (BID) price.
Transaction Cost
The formula for calculating the transaction cost is:
Transaction cost (spread) = Ask Price - Bid Price