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Home » Learn Forex Trading

Learn Forex Trading

Welcome to the OFXT Dojo where you can learn the art of currency trading! Whether you are new to forex, have some experience, or if you are just looking for advanced strategy ideas we have what you are looking for.

You have to believe in yourself - Sun Tzu

White Belt

Brand New to Forex? Make your way to White Belt and follow the training path all the way through. There is no rush, so move at your own pace.

What is Forex?

What is Forex? Forex stands for the foreign exchange market. This is also referred to as the FX, Spot FX or Currency market. All of these names are just several ways of describing... Read More »

Why Trade Forex?

Enormous Volume As was mentioned earlier on, the forex market dwarfs all stock markets of the world in volume. It trades about $4 trillion EACH DAY. To put this in perspective,... Read More »

Introduction to Currency Pairs

Next, let’s go over the most commonly traded currency pairs.There are three groups: the majors, the crosses and the exotics:Major Currency PairsThe “majors” are those currencies... Read More »

Forex Spreads

What is a Spread?The spread represents the difference between the amount brokers will accept to sell a currency for (ask) and the amount that they will pay for a currency (bid).... Read More »

Forex Trading Costs

Typically, while trading currencies on the forex market, the investor does not have to worry about costs stemming from trading commissions. That having been said,... Read More »

Forex Order Types

There are a number of different ways to buy and sell on the forex market. Below are the most common order types in the currency marketMarket Order An order place by the trader... Read More »

Trading on Margin

What is Margin?Margin investing is a borrowing method by which a forex investor can trade currencies at higher volume than he would be able to on his own. The intuition ... Read More »

Forex Micro Accounts

Forex Micro AccountsSome forex brokers are now offering Forex micro accounts, which allow traders to trade in much smaller increments. A micro lot is 1,000 units of the base currency... Read More »

Forex Micro Lots

Forex Micro Lot Overview Forex micro lots are used when trading currencies and are equivalent to 1,000 units of the base currency. They allow traders more flexibility when trading... Read More »

Forex Trading Compared to Stock Trading

Understanding Forex VS StocksThere are advantages and disadvantages to both markets. That being said, the forex market offers traders a number of opportunities and advantages that... Read More »

Forex VS Futures

Forex trading is now a popular alternative to trading in the stock market or futures market. Markets can be very volatile, you may have seen just how volatile by the... Read More »

Trade Rollover

The forex market is active 24 hour a day which makes for some unique market dynamics, like rollover.  Why Rollover ExistsTrade rollover occurs when a broker swaps a trader's... Read More »

Currency Exchange

Exchanging currencies has been around for thousands of years. Today however, one can exchange currencies for the purpose of trading, travel, international purchases of moving internationally.... Read More »

Yellow Belt

Fundamentals of fundamental analysis. Already know what a pip is, but don’t quite understand how non-farm payrolls impacts the forex market? Begin here and we will show you how economics and fundamentals drive the currency market forward.

Most Active Trading Times in Forex

When is the Forex Market Open?Though the forex market is open 24 hours a day, there are specific times when the market is faster moving, and it’s easier to make money. There... Read More »

Fundamental Analysis

Fundamental Analysis PrimerFundamental analysis serves as a basic means to determine the future of a particular investment. It is based on using a variety of economic and political... Read More »

Forex Market Movers

Interest Rates BasicsUnlike most markets, the forex market is moved most notably by macroeconomic and geopolitical events.  The forex market is so huge that events in... Read More »

Most Watched Economic Releases In the Forex Market

The most popular economic indicators in the forex market have the ability to cause swings of several hundred pips in either direction if they come out at numbers that are different... Read More »

Interest Rate Changes and the US Dollar

Think about interest rates as the price of spending money.  If the fed has raised interest rates, it has raised the cost of spending money.  When interest rates rise,... Read More »

NFP - Non Farm Payrolls

Introduction to Non-Farm PayrollsA classic example how how the forex market is moved can be found in the non-farm payroll (NFP) numbers published each month by the US government.... Read More »

Fundamental Analysis vs. Technical Analysis

Fundamental analysis and technical analysis are the two most widely used methods for making trade decisions in the Forex market. Fundamental analysis helps Forex traders understand... Read More »

Green Belt

Ready to Get Technical? Once you have mastered the basics, you are ready to understand technical analysis. Learn the ancient art of Japanese Candlesticks as well more modern techniques like Elliot Waves.

Forex Chart Types

There are three main types of charts that are used by most traders in the forex market. Two of them, bar charts and candlestick charts, display basically the same information in... Read More »

Best Chart Choices

In trying to understand what financial data predicts in future returns of a particular currency, the investor can turn to different types of graphs in order to glean varying... Read More »

Choosing a Time Frame

Choosing a Time FrameAny Forex trader that intends to use charts for trading analysis must determine which time frames will be most useful.  All traders, regardless of their... Read More »

Technical Analysis and Charting Indicators

Bollinger BandsPerhaps the most frequently encountered type of chart in the forex world are those depicting Bollinger Bands.  Named after John Bollinger, a forex trader... Read More »

Support and Resistance

Support and resistance for a currency pair at certain price levels comes from several different sources. Either barrier is always at least somewhat psychological in nature. ... Read More »

Price Channels

Price channels are a chart tool used by traders to set buy and sell points for currencies.  They usually consist of two parallel lines above and below the value of a currency.  They... Read More »

Guide to Fibonacci Retracements

Fibonacci – The Nature of Numbers and RatiosThe study of Fibonacci numbers, retracements and extensions will feel strangely “out there” for most Forex traders – as if trading... Read More »

Moving Averages and Technical Trading

A moving average is a simple technique that lets chart-makers and analysts sift out a lot of the “noise” that short term price swings create.  A more common term outside... Read More »

Bollinger Bands Introduction

Bollinger Bands are used as an indicator to compare both volatility and relative price levels over a specific time period. The indicator is made up of three bands that... Read More »

Common Candlestick Patterns and History of Japanese Candlesticks

It's not too often that tools of financial analysis have a near-mythical origin.  In the forex market, however, the most common graphs are referred to as “candlestick”... Read More »

Japanese Candlestick Patterns

Candlestick analysis denotes a particular type of technical analysis derived from price information gleaned from a candlestick chart of a particular security. This type of... Read More »

Important Charting Patterns When Trading Forex

Important patterns exist within forex trading that offer traders cues as to when by or sell, and sometime as to what direction the market is about to move in.  The following is... Read More »

List of Candlestick Patterns

Bullish Reversal Patterns(1) Strong Bullish Reversal Patterns: Abandoned Baby Morning Doji Star Three Inside UpThree Outside UpThree White Soldiers(2) Moderate Bullish Reversal... Read More »

Head And Shoulders Candlestick Pattern

Head and shoulders is a term that refers to a type of pattern-also called a trend-that is useful in gauging future market values of financial assets. In particular, the... Read More »

Blue Belt

You have learned strategy, now it is time to learn tactics. OFXT ninja training is not complete without money management, commodity currencies or how to create a trading plan.

Commodity Currencies

Currencies of countries that rely heavily on the export of commodities are often referred to as 'commodity currencies.'  An important factor that any Forex trader should... Read More »

Trading Cross Currencies

Trading Cross CurrenciesCross currencies simply refer to currency pairs, or crosses, that do not involve the US Dollar.  As the US Dollar is the most heavily traded currency... Read More »

How to Trade Synthetic Crosses

A synthetic pair is a combination of two currency pairs that are combined in such a way that the trader's positions on the third currency mutual to both pairs – almost always... Read More »

Forex Options Basics

Understanding Options Options are usually associated with the stock market, but the foreign exchange market also uses these derivatives in trading. It gives traders the opportunity... Read More »

Money Management

Money management is one of the most important aspects of forex trading.  Even the most brilliant traders aren't right anywhere close to a hundred percent of the time, and... Read More »

Risk Reward Ratio

Risk-Return RatioRisk-Return is a very important concept that a trader must understand and implement in order to be profitable trading the Forex market.  The concept of Risk-Return,... Read More »

Creating a Trading Plan

It is generally a good idea to create a trading plan ahead of time.  Some trading strategies are more conducive to long term planning than others.  Day trading and... Read More »

Brown Belt

We will prepare you to move forward and start trading on a demo account or a live account. Here, you will learn how to choose a forex broker, a money manager and what to do about taxes.

How to Choose a Forex Broker

For any Forex trader, the inevitable question emerges: “Which Forex broker is the best?”  This guide will not answer this question specifically – the “best” broker... Read More »

How do I know if I can trust my forex broker?

How do I know if I can trust my Forex broker?For the most part, the steps a trader should follow in developing trust with a Forex broker are no different than the process that... Read More »

How to Pick a Money Manager

Many forex traders use money managers to deal with the profits they are not trading with in the forex market, or to manage all their investments for an extended amount... Read More »

Forex Trading and Taxes

Seeing profits from forex trading is an exciting feeling both for you and your portfolio. But then, it hits you. What about taxes? The forex tax code can be confusing at first.... Read More »

Black Belt

You have made it very far and are looking for advanced strategies and techniques to master forex. Follow the strategies, learn what is best for you and how to be flexible when trading. Opportunities multiply as they are seized - Sun Tzu

How to Scalp The Forex Market

Scalping is a trading strategy that relies on more frequent and short-term trades than any other strategy.  Scalping, by the way, is the single most vivid piece of terminology... Read More »

News Announcements And Trading

NFP is a monthly statistic collected by the U.S. Bureau of Labor Statistics. The acronym stands for Non-Farm Payroll. The statistic is released by the BLS on the first... Read More »

News Trading Strategy

“News trading” is just an odd phraseology used to describe forex trading centered around news-worthy events.  Usually, these events are releases of important economic... Read More »

Range Trading

How To Range TradeThe forex market is unique to most other financial markets in that it does not need to be going up for there to be opportunities for profit. Range trading is... Read More »

Swing Trading Strategy

Swing trading is a style of trading used in the forex market or with high-cap stocks that aims to make gains by holding positions for a period ranging from one day to one... Read More »

Trend Trading

Trend trading is a basic trading strategy that works particularly well in the forex market.  In many ways, it is the archetypal trading strategy:  Try to buy low... Read More »

The Carry Trade : How to Trade Using Interest Rates

The carry trade is one of the most popular strategies in forex trading because it guarantees some type return on medium or long term positions. Unlike most strategies for the forex... Read More »

Create a Forex Trading System

When creating your own trading system, there are a few things to keep in mind. You are going to need to be able to spot trends, while making sure not to get faked out. The real... Read More »