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FOLITIC / FOREX EXPLAINED

Forex Explained

Understand currencies, connect economic evidence and build a disciplined research process. Follow six learning stages from the first exchange rate to portfolio applications.

Start with What forex is and why currencies move, then follow the next lesson links. Explore 24 lessons with worked examples, exercises and further reading.

Explore the learning path

Browse by currency

Forex Foundations

Understand currency pairs, price changes and exchange rate arrangements.

Beginner

What forex is and why currencies move

Understand what a currency exchange actually does, who uses it and how to follow this learning path.

Beginner

How to read currency pairs and exchange rates

Read the base currency, quote currency and direction of an exchange rate before interpreting any price movement.

Beginner

Pips and position units explained

Connect a small exchange rate movement with the actual number of currency units at risk.

Beginner

Major currencies and exchange rate regimes

Separate the currency you are studying from the policy framework that shapes how its exchange rate can move.

Market Mechanics

Learn how currency instruments, liquidity, orders and financing work.

Beginner

Spot forwards futures and swaps explained

Compare four common currency instruments by their settlement date, contractual structure and purpose.

Beginner

Spreads liquidity and forex market sessions

Learn why the price you can trade can differ from the chart, and why execution conditions change through the day.

Beginner

Market orders limit orders and slippage

Understand what an order requests and what it cannot guarantee when currency prices move quickly.

Beginner

Rollover and the cost of holding currencies

Separate the exchange rate movement from the financing and transaction costs of holding a currency exposure.

Currency Drivers

Connect policy expectations, economic releases, capital flows and risk sentiment.

Intermediate

How interest rate expectations affect currencies

Study the expected path of policy in both economies rather than treating a rate announcement as an automatic currency signal.

Intermediate

Inflation growth and the value of a currency

Connect domestic purchasing power with exchange rates while keeping the short term market response separate from longer term valuation.

Intermediate

Trade balances and international capital flows

Follow the payments behind trade and investment to understand why a trade surplus does not mechanically determine a currency’s next move.

Intermediate

Risk sentiment and the unwinding of carry trades

Understand how funding positions and changes in risk appetite can amplify currency moves during market stress.

Analysis & Research

Read calendars, charts and positioning, then build a testable research thesis.

Intermediate

How to read economic releases for forex research

Turn a calendar entry into a useful research question by checking the release, its units and what was expected.

Intermediate

What forex charts and indicators can tell you

Use price charts to organise observations while recognising that an indicator transforms past data rather than predicts a certain outcome.

Intermediate

Currency positioning and the limits of COT reports

Learn what futures positioning reports reveal, how their categories work and why they do not represent the whole foreign exchange market.

Intermediate

Build a currency research thesis with scenarios

Write a currency view that can be challenged, updated and rejected instead of collecting facts that merely support a preferred direction.

Risk & Position Sizing

Calculate exposure, recognise concentration and create a repeatable risk review.

Advanced

Leverage margin and drawdowns explained

Separate notional exposure from the cash supporting it, then see how leverage changes losses and the recovery required after a drawdown.

Advanced

How to calculate a forex position size

Work from a defined loss budget and an adverse price distance to estimate position size, then account for costs and execution uncertainty.

Advanced

Currency correlation and hidden portfolio exposure

Look through the names of separate positions to identify shared currency exposures and the conditions under which diversification can weaken.

Advanced

Build a forex risk and execution checklist

Create a repeatable review covering the instrument, counterparty, costs, release calendar and exit process before considering currency exposure.

Strategies & Portfolio Applications

Explore hedging and strategy research, then complete your own currency research note.

Advanced

How currency hedging changes an international investment

Separate an international asset’s local return from its currency effect, then understand the benefits, costs and limits of a hedge.

Advanced

Carry trend and value strategies compared

Compare three broad currency research approaches by their economic idea, implementation assumptions and characteristic failure modes.

Advanced

How to evaluate a forex strategy backtest

Distinguish an attractive historical simulation from evidence that survives realistic costs, unavailable information and changes in market conditions.

Advanced

Your forex research capstone

Bring quotation, macro research, positioning and risk together in a concise currency research note that another reader can inspect and challenge.

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