Module 1 · Forex foundations
Forex foundations — Trading Academy
Understand the quote, the exposure and the demands of different trading styles before studying entries.
First lesson: Read a currency quote. No sign-up required.
Lesson 1 of 3
Read a currency quote
Not completed
By the end of this lesson
- Identify the base and quote currencies.
- Distinguish a pip from a smaller display increment.
Suggested preparation: No earlier lesson is required.
Work it through
Write what one unit of EUR/USD represents. Then calculate the pip change from 1.1000 to 1.1025 using a pip size of 0.0001.
Lesson 2 of 3
Separate margin from risk
Not completed
By the end of this lesson
- Calculate an illustrative flat-rate margin requirement.
- Explain why required margin is not a guaranteed loss limit.
Suggested preparation: Read a currency quote
Work it through
For hypothetical USD 20,000 exposure and a 5% margin requirement, calculate required margin. List two reasons a realised loss could differ from that amount.
Lesson 3 of 3
Compare styles and commitments
Not completed
By the end of this lesson
- Compare holding periods and monitoring demands.
- Explain why the same cost can matter more to a smaller planned move.
Suggested preparation: Read a currency quote, Separate margin from risk
Work it through
Compare a hypothetical five-pip move and a fifty-pip move with the same one-pip round-trip cost. Record the cost as a percentage of each gross move.
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Prepared by InsomniCapital. Checked 2 October 2026. Sources and detailed assumptions appear in each linked guide. Read the risk disclosure.