I need to know the what is Forex Trading and how it works
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Click Education at the top of this site and go through all the courses.
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You’ll get plenty of help and answers here but let’s be clear that you’ll be simply wasting your time. If you’re truly interested in learning and understanding what forex is all about and how it works or what tools and instruments make it happen, it’s better to click the green education button and know everything in detail.
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Hi @Asil5472,
here is a short overview what is Forex and how it works, meaning what is required from you to do when you start trading on the Forex.
The short story is - you predict where the price of a currency pair will move. Will it move UP or DOWN.
If you predict correct direction you make money if you invest some money on your prediction.
If you predict wrong direction you lose money if you invest some money on your prediction.
CURRENCY PAIR and CURRENCY PAIR PRICE
Currency pair is combination of two currencies. Let’s take Euro and U.S. dollar. When you combine these two currencies you get EURUSD. This is called currency pair.
Currency price is defined like this:
1 Euro has its price in U.S. dollar. If you go into exchange today and ask for 1 Euro to buy with U.S. dollars, you will get answer that you can buy 1 Euro for 1.19800 U.S. dollars.
That price is written like this EURUSD = 1.19800 in Forex.
If the price of a pair changes it will change UP or DOWN.
In Forex your only job is to predict correct way and you will make money.
Now, take a look below on the image.
This is the current status of the market for EURUSD.
I use metatrader 4 trading platform which I use for showing the price of a currency pair price.
On the trading platform you have tools you can use to make the analysis to predict where the price will move, UP or DOWN.
There are different type of analysis you can use, but this one on the image is done by using technical analysis, called price action analysis.
There is trading account you use for depositing your money. You need money to make money on the Forex market.
You can invest from $10.00 up to thousands dollars and that depends on you and your possibility to deposit money for trading.
As a beginner you can use demo account which gives you virtual money so you can practice. Everything will be the same like on the account with real money(almost the same, but this is not the topic right now).
Then you use your money and you predict where the price will move. If you predict that the price on the chart below will move DOWN you will make money.
How much money you can make depends on your investment, your ability to predict correct direction and how you are disciplined.
You can make from $1.00 up to unlimited money. The small change in price of a currency pair can worth $1.00 or more. If you have large investment on your trading account you can make $100.00 per small price change.
I hope this has given your starting overview what is Forex and what you do on the Forex market.
If you have any question feel free to ask.
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Hello @Asil5472,
If you’re eager to start learning about Forex, we suggest that you make your way over to the School of Pipsology, our very own guide for teaching beginners how to trade the foreign currency exchange market. We start you off in Kindergarten, teaching you Forex basics, and you progress all the way to College, learning more complex subjects. This is all self-study, done at your own pace. Along the way, stop and take one of the 50 forex trading quizzes to make sure you’ve retained the knowledge.
Pipzilla 
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Hi Asil5472,
Welcome to babypips and wish you all the best.
Yes, the best place to start is the school of pipsology and take your time to understand the markets. The journey is going to be rough, so have a lots of patience and perseverance.
GOD Speed and good luck!
Abdul
MFM Team
School of Pipsology is perfect for beginners