Forex
20 lessons in this track so far, in the order we suggest reading them.
Forex Basics
BeginnerCurrency Pairs: Majors, Minors and ExoticsForex trades currencies in pairs, like EUR/USD. Learn base and quote currencies, how to read a quote, majors, crosses and exotics, and what moves each pair.BeginnerPips and PipettesA pip is the standard unit of movement in a currency pair; a pipette is a tenth of a pip. Learn pip sizes, how to calculate pip value and convert pips to money.BeginnerLots: Standard, Mini and MicroForex positions are measured in lots. Learn standard, mini, micro and nano lot sizes, their pip values, the exposure they create and how to choose the right size.BeginnerLeverage and Margin in ForexForex brokers offer high leverage through margin. Learn how margin is calculated, regulatory limits, margin calls and stop outs, and how to use leverage safely.BeginnerRollover and Swap in ForexHolding a forex position overnight earns or pays interest called rollover or swap. Learn how it is calculated, triple Wednesday, swap free accounts and carry.BeginnerForex Trading SessionsForex trades 24 hours a day, five days a week, across four main sessions. Learn session times, overlaps, which pairs move when and how sessions affect spreads.BeginnerForex vs FuturesCompare spot forex with currency futures on market structure, costs, leverage, transparency, sizing and regulation, with worked examples, to choose what suits you.
Forex Drivers
IntermediateCurrency CorrelationsMany currency pairs move together or in opposite directions. Learn common correlations, safe havens and commodity currencies, and how to avoid doubling your risk.IntermediateInterest Rate DifferentialsThe gap between two countries' interest rates is a major driver of exchange rates. Learn why differentials move currencies, how to track them and their limits.IntermediateCarry Trades in ForexA forex carry trade buys a high yielding currency funded by a low yielding one. Learn how it earns, famous unwinds, funding currencies and how to manage crash risk.IntermediateCentral Bank InterventionCentral banks sometimes buy or sell their own currency to influence its value. Learn how intervention works, famous examples, warning signs and how traders respond.IntermediateFX Fixings: London and TokyoFX fixings are daily benchmark exchange rates used by funds and companies. Learn how the London 4pm and Tokyo fixes work, the flows around them and the 2013 scandal.IntermediateFX LiquidityForex is the largest market in the world, but liquidity varies by pair, time and venue. Learn how FX is structured, who provides liquidity and when it dries up.
FX Instruments
AdvancedFX Forwards and Forward PointsAn FX forward fixes an exchange rate for a future date. Learn how forward rates and forward points are calculated from interest rates, with examples and uses.AdvancedNon-Deliverable Forwards (NDFs)Non deliverable forwards are cash settled currency forwards for restricted currencies like the Indian rupee. Learn how NDFs work, fixing rates, uses and risks.AdvancedFX Swaps and Currency SwapsAn FX swap exchanges currencies now and reverses later; a cross currency swap exchanges interest payments for years. Learn both, their pricing and their uses.AdvancedFX OptionsFX options give the right to exchange currencies at a set rate. Learn volatility and delta quotes, risk reversals, Garman Kohlhagen pricing and hedging uses.AdvancedCurrency FuturesCurrency futures are exchange traded contracts to exchange currencies at a set rate on a future date. Learn CME contract sizes, quotes, margin, rolls and uses.AdvancedCovered and Uncovered Interest ParityInterest rate parity links exchange rates and interest rates. Learn covered and uncovered parity, the arbitrage behind them and the forward premium puzzle.AdvancedCross-Currency BasisThe cross currency basis measures deviations from covered interest parity. Learn why it exists, why it is often negative and what it says about dollar funding.