Major currency pairs are the most traded forex pairs globally, featuring the most liquid and stable currencies. These include:

A pip (percentage in point) is the smallest price movement in the forex market, usually representing a 0.0001 change in most currency pairs. Traders use pips to measure price changes and determine profits or losses. For example, if EUR/USD moves from 1.1000 to 1.1010, it has moved 10 pips.

The spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy) of a currency pair. It represents the broker’s fee for executing trades and varies based on market conditions and liquidity.

Leverage in forex trading allows traders to control larger positions with a smaller amount of capital. It is expressed as a ratio, such as 1:100, meaning a trader can control $100,000 with just $1,000 in their account. While leverage can amplify profits, it also increases the risk of losses.