Forex for beginners: how to read a signal
Forex is the market where currencies are exchanged against each other. Before you follow anyone's signals, ours included, you need to understand the few numbers every trade is built on.
Last reviewed: · 964FX
The basics in five words
- Pair: EUR/USD means euros priced in dollars. Buying it means you expect the euro to rise against the dollar.
- Pip: the standard price step. For EUR/USD one pip is 0.0001; for pairs with the yen it is 0.01.
- Lot: the trade size. A standard lot is 100,000 units of the first currency, a mini lot 10,000 and a micro lot 1,000.
- Spread: the gap between the buy and sell price. It is a cost you pay on every trade.
- Leverage: borrowed exposure that makes both gains and losses bigger.
How to read a 964FX signal
Every signal on our signals page and in our Telegram channel has the same parts:
- Pair and direction: for example EURUSD SELL.
- Entry: the price where the idea starts.
- Stop loss (SL): where the idea is wrong and the trade closes with a loss.
- Take profit (TP): the target. Each signal shows its reward-to-risk ratio.
- Six reasons: trend, momentum, levels and the news calendar, so you can judge the idea yourself.
- Status: a signal stays open until price touches TP or SL, and we do not open another one on the same pair before that.
Risk rules that protect a beginner
A common rule is to risk a small, fixed share of the account per trade, such as 1%. On a 1,000 dollar account that is 10 dollars. If the stop is 20 pips away, the size must be small enough that 20 pips equals 10 dollars, which on EUR/USD is about 0.05 lots.
- Always use the stop loss, and never move it further away.
- Check the economic calendar before entering.
- Start on a demo account, then trade small.
- Keep a journal of every trade and why you took it.
Frequently asked questions
How much money do I need to start forex?
Some brokers allow small deposits, but the right amount is money you can afford to lose. Start on a demo account and move to small real trades only when you follow your rules consistently.
What is a pip?
A pip is the standard price step: 0.0001 for most pairs and 0.01 for yen pairs. On one standard lot of EUR/USD, one pip is worth about 10 dollars.
Can I copy signals without understanding them?
You can, but it is risky. Signals lose sometimes. Knowing why a signal exists and where it is wrong helps you size it properly and stay calm.
Are forex signals guaranteed?
No. No signal provider can guarantee results. Our archive shows every closed signal, wins and losses, so you can judge for yourself.
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Risk warning
Forex, gold and CFDs are leveraged products and you can lose money quickly. Only trade money you can afford to lose. This page is education, not financial, tax, legal or religious advice, and past results do not guarantee future results.
Introducing broker disclosure
964FX is run by Saif Altamimi, an Introducing Broker (IB) for IC Markets. The ic.com website is operated by Raw Trading Ltd, which IC states is regulated by the Seychelles Financial Services Authority (licence SD018). If you open an account through a link on this site, Saif may receive a commission from the broker. IC does not accept clients from some countries, including the United States, Canada and Iran, so check that the service is allowed where you live.