Welcome to Forex Trading Tutorial For Beginners basics guide. If you are new to Forex trading and willing to start learning, you have landed at the right page.
This is a step by step Forex trading tutorial. This tutorial aims to provide all the necessary information to newcomers in one place.
This tutorial is created by a Forex trading expert; AKA Technician. Technician has been in the markets for over a decade . He is specialized in technical analysis and running for the Chartered Market Technician(level 2) certification. In addition to a Master’s degree in finance .
In this guide, we will explain the most basic definitions and concepts. The concepts you must know before you start learning how to analyze the markets, and make trades.
We will explain things like, what Forex trading is, and how trading works. Also, what is a Forex broker and how to choose one. How to read the prices and much more .
After completing this tutorial, you will be ready to start the intermediate level tutorial. The intermediate tutorial covers analysis and forecasting: Technical Analysis Basics Tutorial.
We ask you to be patient while reading, especially in the beginning. If you feel that a topic is not cleast keep going, it will be clearer by the end of the tutorial.
If you have any questions after completing, please drop it in the comments section. It is at the end of this page.
You can move between chapters through the drop down menu below.
The Forex Market is open for trading 24-hours, 5 days a week. Because the market operates in multiple time zones, it can be accessed at almost any time. The market closes for retail trading on the weekend.
The Forex market opens on the first business day of the week in Australia and closes on Friday with the end of the business day in the U.S. And that translates to 5:00 pm Eastern Time Sunday through 5:00 pm ET on Friday (22.00 GMT on Sunday until 22.00 GMT on Friday).
A specific currency will usually be most active when that particular market is open. For example, the British pound pairs tend to be most active during the hours when the London market is open. The Japanese yen pairs will be more widely traded during the Tokyo business day.
The market hours for the major Forex markets are as follows:
- London Session – 3 AM through 12 noon Eastern time (around 35% of total FX volume)
The Most active pairs during London session are the British pound and the European currencies like the Euro.
- New York Session – 8 AM through 5 PM Eastern time (around 20% of total FX volume)
All USD pairs are active during this session.
- Sydney Session – 5 PM through 2 AM Eastern time ( around 4% of total volume)
Asian currencies will be most active. Currencies such as the Australian Dollar and New Zealand Dollar.
- Tokyo Session – 7 PM through 4 AM Eastern time (~6% of total volume)
Japanese Yen and other Asian currencies are most active.
Remember: When there is an overlap between sessions, the market tend to be more active(higher trading volumes, hence major prices movement).
During the hours of 8 AM and 11 AM Eastern US time, the two largest markets (London and New York) overlap for about 3 hours. And that makes it the most active Forex trading hours of the day.
Also, Sydney and Tokyo sessions overlap between 7 PM and 2 AM Eastern time. And that makes it the most active session for pairs that include Asian currencies.