How to trade forex

Getting started with currency trading is far more straightforward when you know exactly what to do first. This guide is built to help you learn how to trade forex by focusing on the steps that matter most: opening an account and placing your first trade. Instead of theory-heavy explanations about the broader forex market, you’ll see how traders actually get set up, what information is required, and how long the process usually takes.

We walk through the account opening journey from start to finish, then show how basic forex trading examples are applied at the platform level. You’ll also see how instruments like CFD trading and, where available by jurisdiction (including the UK), forex spread betting are accessed once your account is live, with clear, practical examples.

If you’re ready to move from reading to doing, follow the steps in this guide and open a trading account with FxPro to get started..

Learn how to trade forex in 6 steps

Our step-by-step guide shows exactly how to learn to trade forex by focusing on the practical actions. It’s aimed atbeginners who want clarity. You’ll see how to go from setup to execution, understand what you’re trading, and follow a clear forex trading guide that makes each stage logical, manageable, and easy to follow from start to finish. Let’s get started:

1. Open a forex account & fund it

Before placing a trade, you need a live account and available funds. The process is straightforward:

1. Choose FxPro, a regulated broker and open an account with us by completing the registration form.
   
2. Verify your identity with the requested documentation.
   
3. Once your forex account is approved, log in to the specific trading platform.
   
4. Deposit funds using a supported payment method.
   
5. Your funds are securely credited to your account, ready for use.
   

Once this is done, you’ll be able to start trading without any unnecessary delays.

2. Choose the currency pair you’re going to trade

Forex trading involves exchanging foreign currencies in pairs. The price of a forex pair indicates how one currency is valued against another. The currency on the left is known as the base currency, while the second is the ‘quote’ currency. The price reflects the value against the quote currency, helping you understand how much of the quoted currency is needed to buy one unit of the base currency. Take time to understand volatility, liquidity, and spreads before choosing a pair that suits your approach, whether you’re focused on short-term moves or longer holds.

The main forex pairs categories

Forex pairs are grouped into three main categories:

• Major pairs – These include the most traded currencies globally and feature the US dollar. They’re popular due to high liquidity and tighter spreads.
  
• Minor pairs – Pairs that don’t include the USD but still involve major economies and are quite popular and liquid instruments.
  
• Exotic pairs – One major currency matched with a less commonly traded one, often displaying wider spreads and sharper market moves.
  

Understanding these categories helps you choose markets that match your risk appetite.

3. Decide whether to buy (go long) or sell (go short)

Once you’ve selected a pair, the next decision is whether to buy or sell. If you expect the price of a forex pair to rise, you’ll buy, meaning you go long. If you believe it will fall, you sell, aiming to benefit from the downward movement. This decision is based on analysis, news, or technical signals, and it defines how you approach the trade.

Bonus Tip: Whether you choose to ‘buy’ or ‘sell’, you’re speculating on the movement in the underlying currency, not owning it outright.

4. Set stop and limit orders for risk management

The best trading approach starts with strong risk management from your first trading day. Stops and limits help you control potential outcomes before the market moves.

A stop-loss closes your trade automatically if it reaches a set level, preventing you from losing more, while take-profit limit orders lock in profits at a predefined target. Some traders also use a guaranteed stop, which ensures your position closes at the exact level you choose, even during volatility.

These tools allow you to manage your risk effectively and avoid emotional decisions once the trade is live, especially in fast-moving markets.

5. Monitor your trade

After opening and closing parameters are set, monitoring your trade is about discipline. Watch how the market price reacts to news, volume, and technical levels. Avoid unnecessary changes unless they align with your trading plan.

Many traders combine monitoring with day trading strategies, while others hold positions longer. Either way, keeping an eye on open positions helps you stay aware of exposure, margin usage, and potential adjustments.

Use this stage to practise patience and consistency rather than reacting to every slight fluctuation.

6. Close your trade – take the profit or the loss

Eventually, you have to close your trade. This can happen automatically through predefined levels or manually when conditions change. Closing a trade realises your potential profit or loss, which depends on the per point of movement in the market and your position size. Understanding your entry and exit points is essential for long-term consistency.

When the trade is closed, profits and losses are reflected immediately, allowing you to review performance. Whether you’re focused on short-term opportunities or trading forex with us as part of a longer journey, every completed trade builds experience and confidence as a developing trader.

Learn how to trade forex with examples

Learning forex becomes far clearer when you see how trades work in real situations. This section shows how an FX trade is placed using a real currency pair, helping you understand how traders speculate on price movements in the forex market. By following simple, practical examples, you can see how decisions are made when you want to buy or sell, making it easier to start trading with confidence.

Forex CFD trading

A CFD allows you to trade the price movement of a currency without owning the underlying asset. For example, you expect the Euro to rise against the US Dollar. You open a buy position on EUR/USD using a CFD. To open the trade, you only need to put up a small amount of margin, rather than the full value of the position, due to the use of leverage. If the euro strengthens, the profit reflects the movement in price. If it falls, losses increase accordingly. It is recommended to add a stop-loss order to limit downside risk.

Spreads

The spread is the difference between the buy and sell price of a currency and represents a key trading cost. For example, if EUR/USD is quoted at 1.1000–1.1002, the spread is 2 pips. When you open a trade, it starts slightly negative due to this cost.

This applies whether you trade CFDs or spread bet on forex. A tighter spread can make frequent trading more cost-efficient. Alternatively, wider spreads may appear during volatile periods.

 Trade forex with a leading broker

Choosing the right broker makes a real difference to how confidently you trade. When you want to trade forex, you need fast execution, transparent pricing and a platform built for active decision-making. Trading with a leading broker like FxPro gives you access to advanced charting, reliable order handling and tools designed to support technical analysis at every level.

Getting started is simple: open a live trading account, verify your details and make your first deposit using a secure payment method. From there, you can trade global markets with clarity and control, knowing expert help and support is available whenever you need it. Take the next step and trade forex with a broker trusted by millions of global traders!

How to trade forex FAQs