What you will learn
- Read a currency-pair quote and calculate pip value and spread cost.
- Explain how execution, rollover interest and carry affect the result of holding a position.
- Build a simple exchange-rate scenario table and size the effect of leverage.
Before you begin
Basic arithmetic with decimals and percentages. No prior trading or currency-market knowledge is assumed.
Full lesson list
All lessons are freely available. No enrollment or payment is required.
Quotes, Pips and Spreads
- Identify the base and quote currency and read a two-way quote.
- Calculate pip value and the cost of a spread.
Execution, Rollover and Carry
- Explain how slippage and order type change the price actually received.
- Calculate net carry and compare it with an adverse exchange-rate move.
Exchange-Rate Scenarios and Leverage
- Convert foreign-currency exposure into home-currency scenarios.
- Estimate how leverage and margin magnify an exchange-rate move.