Forex Knowledge

Forex market basics se advance concepts tak — simple Hindi/Hinglish me, beginners ke liye clear explanation ke saath.

Forex Kya Hai? (What is Forex?)

Forex (Foreign Exchange Market) duniya ka sabse bada financial market hai, daily turnover $7+ trillion. Yahan currencies trade hoti hain — jab aap ek currency buy karte ho, automatically dusri sell hoti hai (currency pairs: EUR/USD, GBP/USD, USD/JPY, USD/INR).

24/5 open: Asia session (Tokyo open 5:30 AM IST), Europe (London 1:30 PM IST), America (NY 6:30 PM IST). Weekend close.

Currency Pairs Samajhein

• Major pairs: EUR/USD, GBP/USD, USD/JPY — highest liquidity, tight spreads (0.1–0.8 pips ECN).
• Minor pairs (cross): EUR/GBP, AUD/NZD — no USD; wider spreads, moderate volume.
• Exotic pairs: USD/INR, USD/ZAR, EUR/TRY — illiquid, spreads 5–50 pips; fundamentals-driven.

Quote structure: EUR/USD 1.0850 → 1 Euro = 1.0850 USD. Base currency (left) vs quote currency (right). Bid (sell price) vs Ask (buy price); difference = spread.

Pips aur Lot Size

• Pip: Price movement ki smallest unit. Most pairs: 4th decimal (0.0001). JPY pairs: 2nd decimal (0.01). Pipette = 0.1 pip (5th decimal).
• Lot sizes:
  • Standard lot: 100,000 units (1 pip = $10 for USD pairs).
  • Mini lot: 10,000 units (1 pip = $1).
  • Micro lot: 1,000 units (1 pip = $0.10).
  • Nano lot: 100 units (1 pip = $0.01).

Example: EUR/USD 1.0850 → 1.0860 (10-pip move). Trading 0.1 lot (mini) = $1/pip × 10 = $10 profit (long trade).

Leverage aur Margin

Leverage: Broker se borrowed capital. 1:100 leverage → $100 = $10,000 trade control. Amplifies profit aur loss.

Margin: Collateral locked for trade. $10,000 trade @ 1:100 leverage = $100 margin required. Margin call agar balance margin requirement se niche jaaye.

Risk: Leverage high → losses bhi high. Beginners 1:10 to 1:50 recommended; avoid 1:500+.

Technical vs Fundamental Analysis

Technical Analysis: Charts, indicators, price action se future predict karo.

• Support/Resistance: levels jahan price reverse hota hai.
• Indicators: RSI (overbought/oversold), MACD (momentum), Moving Averages (trend direction).
• Candlestick patterns: Doji, Engulfing, Pin Bar — reversals signal.

Fundamental Analysis: Economic news, central bank policy, geopolitical events.

• NFP (Non-Farm Payrolls): US jobs data; USD volatility 50–100 pips.
• Interest rates: Fed/ECB/BoE rate hike → currency strong; rate cut → weak.
• GDP, CPI (inflation): Strong economy → currency appreciation.

Trading Sessions aur Volatility

Risk Management Essentials

• Stop-loss mandatory: Har trade me fixed SL. Never hold "hope" ki price wapas aayegi.
• Risk per trade: 1–2% of account. $1000 account → max $10-$20 risk/trade. Scalpers 0.5%.
• Risk:Reward ratio: Minimum 1:1.5; ideal 1:2 ya 1:3. 10-pip risk → 20-30 pip target.
• Position sizing formula: Lot size = (Account × Risk%) / (Stop distance in pips × pip value).

Example: $1000 account, 2% risk ($20), EUR/USD 20-pip SL, pip value $1/mini lot → Lot = 20 / (20×1) = 1 mini lot (0.1 standard).

Forex Broker Selection

1. Regulation: FCA (UK), ASIC (Australia), CySEC (Cyprus). India: no direct SEBI forex retail; offshore brokers common but risky. Check regulation status.
2. Spreads aur commissions: ECN/STP accounts: raw spreads 0.1–0.5 + $3-$7 commission/lot. Market maker: wider spreads (1–3 pips), no commission.
3. Execution speed: Slippage < 0.5 pip during news. Test demo 50 trades; measure avg slippage.
4. Withdrawal speed: 24-48 hrs ideal. Avoid brokers with withdrawal complaints.
5. Platform: MetaTrader 4/5 (most common), cTrader (advanced). Check mobile app quality.

Common Beginner Mistakes

• Over-leveraging: 1:500 leverage + 50% account risk = wipeout in 2-3 trades. Limit 1:50 max.
• No trading plan: Random entries based on "feeling". Define setup, entry, SL, TP before trade.
• Revenge trading: Loss ke baad bada lot size leke "recover" karna. Leads to bigger loss.
• Ignoring fundamentals: Scalping during NFP/FOMC; spreads explode, slippage 10+ pips.
• Chasing price: FOMO entry after 50-pip move; often reversal point. Wait for pullback.

Forex Trading Roadmap (90-Day Beginner Plan)

1. Week 1-2: Learn basics — currency pairs, pips, lot size, leverage, margin. Read articles, watch YouTube tutorials. Open demo account.
2. Week 3-4: Study one strategy deeply — price action (support/resistance + candlesticks) OR indicator-based (RSI + MACD). Practice 50 demo trades.
3. Week 5-8: Backtest strategy on TradingView/MT4; 100 trades historical data. Measure winrate, avg R:R. Refine entry/exit rules.
4. Week 9-12: Forward test demo 200 trades; journal every trade (setup, emotion, result). Target 50%+ winrate with 1:2 R:R.
5. Month 4+: Micro live account ($100-$200); trade nano/micro lots. Scale up only after 3 months consistent profit.

India-Specific Forex Context

Legal status: SEBI allows forex derivatives (USD/INR futures) on NSE/BSE; lot size large (~$1000), margin high. Retail spot forex trading offshore (international brokers) legally grey area; RBI discourages capital outflow.

Taxation: Forex gains taxable as speculative income (if intraday) or capital gains (if positions held). Offshore broker profits must be declared in ITR; consult CA for exact treatment.

Alternatives: Trade USD/INR futures on NSE for legal compliance; lower leverage (1:10-1:20), but regulated. Many Indians trade offshore for higher leverage/smaller lot sizes — understand legal risks.

Pro Tips for Indian Traders

• Session timing: Best for Indian traders: London open (1:30 PM) to NY close (1 AM IST). Avoid Asia-only (low volatility).
• INR pairs: USD/INR moves 10-30 pips/day; low volatility vs majors (50-100 pips). Better for swing; not scalping.
• News calendar: Track US NFP (1st Friday 6 PM IST), FOMC (rate decision 11:30 PM IST), RBI policy (10:30 AM IST for USD/INR impact).
• Broker deposits: Use Skrill/Neteller/crypto for offshore brokers; Indian banks may block direct forex broker transactions.

FAQ — Forex Beginners

1. Forex trading India mein legal hai?

NSE/BSE pe USD/INR futures legal (SEBI regulated). Offshore spot forex brokers legally grey area; RBI discourages but no explicit ban on individuals. Trade at own risk; declare profits in ITR.

2. Minimum kitne paise se start kar sakte hain?

Demo account free; live $10-$50 se shuru (micro/nano lots). Realistically $200-$500 recommended for proper risk management (2% risk = $4-$10/trade).

3. Kitna profit realistic hai monthly?

Beginners: 2-5% monthly consistent realistic. 10%+ possible but high risk. Avoid promises like "50% monthly"—scams. Pro traders target 3-8% monthly with low drawdown.

4. Technical ya Fundamental analysis better hai?

Combine both. Technicals for entry/exit timing; fundamentals for trend direction. Example: Fed hawkish (fundamental) → USD bullish; wait for support bounce (technical) to enter long USD pairs.

5. Scalping vs Swing trading — beginners ke liye kaunsa?

Swing trading easier for beginners: fewer trades, less screen time, wider SL (20-50 pips vs 5-10 scalp). Scalping demands tight spreads, fast execution, intense focus; advanced level.

6. Demo account se live mein switch kab karein?

After 3-6 months demo with 200+ trades, 50%+ winrate, consistent R:R 1:2+, journaling habit strong. Start live with micro lots; scale slowly.

7. Kaunse pairs beginners ke liye best?

EUR/USD, GBP/USD (highest liquidity, tight spreads, moderate volatility). Avoid exotic pairs initially (wide spreads, unpredictable moves).

8. Stop-loss hunting real hai ya myth?

Yes, liquidity hunting hota hai at obvious levels (round numbers, visible swing highs/lows). Solution: place SL 5-10 pips beyond obvious zone; use limit orders instead of tight market SL.

Forex Quick Start Checklist

1. ✅ Read 5-10 beginner articles (pips, leverage, risk management, technical basics).
2. ✅ Open demo account (MetaTrader 4/5 or cTrader); practice platform navigation.
3. ✅ Choose one strategy (price action support/resistance OR RSI+MACD combo).
4. ✅ Backtest 50 trades on historical charts; note winrate and avg R:R.
5. ✅ Forward test demo 100 trades; journal every trade (screenshot + notes).
6. ✅ Study risk management deeply: position sizing calculator, 2% rule, R:R ratios.
7. ✅ Watch economic calendar daily; understand NFP, FOMC, CPI impact.
8. ✅ After 3 months consistent demo profit, open micro live account ($100-$200).
9. ✅ Trade nano/micro lots initially; gradually scale based on results.
10. ✅ Monthly review: winrate, avg R:R, max drawdown, emotional mistakes. Refine strategy.

Disclaimer

Forex aur trading markets me risk hota hai. Ye website sirf educational purpose ke liye hai. Koi bhi trade lene se pehle apni research zaroor karein. Hum kisi profit ya loss ki guarantee nahi dete.