Beginner’s Guide to Forex Trading: What You Need to Know Before You Start
💡 Introduction
Forex trading (also called foreign exchange trading) is one of the largest financial markets in the world. Every day, traders buy and sell currencies worth trillions of dollars. Many people are now entering this market to earn extra income or build a full-time trading career.
If you are also planning to start forex trading, this guide will help you understand the basics, tools, and tips you must know before placing your first trade.
🌍 What is Forex Trading?
Forex (short for Foreign Exchange) means buying one currency while selling another.
For example, when you trade EUR/USD, you are buying Euros and selling US Dollars at the same time.
Currencies are traded in pairs, such as:
- EUR/USD (Euro vs. US Dollar)
- GBP/INR (British Pound vs. Indian Rupee)
- USD/JPY (US Dollar vs. Japanese Yen)
The forex market is open 24 hours a day, 5 days a week, making it flexible for traders worldwide.
📊 Key Terms You Must Know
- Pip (Price Interest Point):
The smallest price movement in forex, usually the 4th decimal point in a currency quote. - Lot Size:
The amount of currency units you trade.- Standard lot = 100,000 units
- Mini lot = 10,000 units
- Micro lot = 1,000 units
- Leverage:
It allows you to control a large position with a small amount of money.
For example, 1:100 leverage means ₹1,000 can control ₹1,00,000 worth of currency.
⚠️ Be careful — leverage increases both profits and losses! - Spread:
The difference between the buying (ask) and selling (bid) price. This is how brokers earn. - Stop-Loss & Take-Profit:
Stop-loss limits your loss automatically, and take-profit locks in your profit when the price hits a target.
🧠 Why Do People Trade Forex?
- Global Market: Accessible from anywhere.
- Low Starting Investment: You can start small with a demo or mini account.
- High Liquidity: You can enter or exit trades quickly.
- Learning Opportunity: Improves financial knowledge and analytical skills.
However, trading is not gambling. You must follow strategy, risk control, and patience to succeed.
⚙️ Tools You Can Use on AIGFM
AIGFM provides many free tools and calculators that can help beginners:
- 🧾 Forex Profit Calculator – Estimate your potential profit or loss before trading.
- 📈 Retirement Calculator – Plan your long-term investments.
- 💰 SIP Calculator – Helps you grow your savings systematically.
These tools make trading and investment decisions more confident and calculated.
⚠️ 5 Common Mistakes New Traders Make
- Trading without learning the basics
- Using too much leverage
- Letting emotions control decisions
- Not using stop-loss orders
- Expecting quick profits
✅ Tip: Always start with a demo account to practice risk-free before trading with real money.
📘 Final Thoughts
Forex trading is exciting, but success doesn’t come overnight. Learn the basics, plan your trades, manage risk, and stay disciplined.
At AIGFM, we guide you step-by-step — from beginner to advanced trader — through expert mentorship, live sessions, and smart trading tools.
👉 Start your journey today at aigfm.co.in and take the first step toward financial freedom.
