A quote like EUR/USD 1.0850 confuses a lot of newcomers on day one. EUR is the base currency, USD is the quote currency, and the number tells you how many US dollars one euro currently buys. Once that clicks, the rest of forex vocabulary falls into place quickly.
Pips, Lots, and Spreads
A pip is usually the fourth decimal place in a quote — the smallest standard price movement tracked. Position size is measured in lots (standard, mini, micro), and the spread is the small difference between the bid and ask price, which is effectively the broker's fee for executing your trade.
Why Trading Sessions Matter
Forex trades 24 hours a day across Sydney, Tokyo, London, and New York sessions. Liquidity and volatility shift depending on which sessions overlap — the London/New York overlap, for instance, is typically the most active window for major pairs. Knowing when a pair is naturally more volatile helps you size positions sensibly rather than getting caught off guard.
Our Forex Market – Basics course walks through each of these building blocks with live chart examples, so the terminology stops being abstract and starts being usable.
