Forex & Currency Trading in Depth
Understand how the currency market really works, from sessions, cross rates and carry to central banks, pegs and broker choice, and turn that knowledge into a written, risk-aware forex trading plan.
Self-study course Self-study course: written lessons, videos and downloadable materials for independent learning. There is no supervision, assessment, individual feedback or tutoring. Self-check quizzes are evaluated automatically in your browser — we do not see your results.
All 13 lessons free
Before you start
- Forex basics: pairs, pips, lots and spreads
- Risk management basics: position sizing and stop-loss orders
- Basic macro knowledge: interest rates and inflation
What you will be able to do
- Classify currency pairs and compare their real trading costs in percent
- Calculate cross rates, overnight swaps and forward rates from given data
- Estimate long-term currency valuation with purchasing power parity
- Measure correlations between pairs and build a watchlist without duplicate exposure
- Evaluate central bank decisions and intervention risk against market pricing
- Write a forex trading plan with session, cost and risk rules and review it weekly
Lessons in this course
The currency universe: majors, minors, crosses and exotics
Learn how currency pairs are grouped, why the groups behave differently and how to judge the real cost of trading each group.
The forex trading day: Sydney, Tokyo, London and New York
Map the four trading sessions into German time, understand how liquidity and spreads change through the day, and avoid the daylight-saving traps.
Cross rates: calculating them and understanding triangular relationships
Calculate cross rates and their bid/ask prices from two dollar pairs, and use triangular relationships to see what really drives a cross.
Interest-rate differentials, overnight swaps and the carry trade
Calculate overnight swaps from interest-rate differentials, understand forward points and covered interest parity, and judge the real risk of a carry trade.
Purchasing power parity and long-term currency valuation
Use absolute and relative purchasing power parity and the real exchange rate to judge long-term currency valuation, and understand why PPP is a poor timing tool.
Currency correlations and choosing which pairs to watch
Calculate a correlation coefficient from returns, understand why currency pairs move together, and build a small watchlist without duplicate exposure.
How central bank decisions, forward guidance and interventions move currencies
Read market-implied rate expectations, judge a central bank surprise, understand forward guidance and recognise the stages of currency intervention.
Pegged and managed currencies: CNY, HKD, SAR, AED and the risks of de-pegging
Understand how fixed and managed exchange-rate regimes work, how they are defended, and how to read warning signs before a peg breaks.
Emerging-market currencies: inflation, capital flows and the Turkish lira as a case study
Learn which forces drive emerging-market currencies and how to judge whether a high interest rate really compensates for depreciation risk.
Choosing a forex broker: regulation, ESMA leverage limits, spreads versus commissions
Check a forex broker's regulation, understand EU retail leverage and margin rules, and compare spread-only and commission accounts by real cost per lot.
Currency risk for euro-based investors and simple hedging ideas
Measure how exchange rates change the euro return of foreign investments and compare unhedged, fully hedged and partly hedged positions.
Session-based technical setups: the Asian range and the London open (educational example)
Build a fully rule-based Asian-range breakout plan for the London open, including filters, entry, stop, target and position size.
Your forex trading plan and weekly review
Write a forex-specific trading plan with currency exposure limits and event rules, and run a structured weekly review with numbers.
Derivatives: Futures, Options, CFDs and Certificates
Continue with "Derivatives: Futures, Options, CFDs and Certificates" to understand the instruments many forex traders use, including their costs and risks.
View course outline