HomeLearn to TradeAxi AcademyForex Trading Fundamentals

Forex Trading Fundamentals

Course overview

1. What is forex?
2. Major and minor forex pairs
3. How do you trade forex?
4. Key features of the forex market
5. How do leverage and margin work?
6. Using risk management in forex
7. Conclusion

2. Major and minor forex pairs

The US dollar (USD) is the world's reserve currency, with its strength or weakness significantly influencing other currencies and affecting global trade and investment.


Major pairs, led by the USD, account for over 70% of daily trading volume and feature stable economies in combinations like EUR/USD, USD/JPY, and GBP/USD.


Minor pairs, excluding USD, involve major currencies like EUR/GBP, EUR/CHF, and CHF/JPY, offering decent liquidity and volatility.


Exotic pairs include major and developing market currencies such as TRY, MXN, and ZAR, which are less liquid and more volatile, making them riskier but potentially providing more opportunities.

 

 

Example

Forex Example:

forex

Mark, an Australian, plans a vacation to the US and exchanges Australian dollars for US dollars.

forex

A geopolitical conflict drives investors to seek safe-haven assets like the USD, resulting in a strengthening USD value against the AUD.

forex

Mark returns home without spending any cash, but upon converting his USD back to AUD, he finds that he now has more money than he initially started with.

Quiz

1/2

What are exotic currency pairs known for?

Previous chapter
Next chapter
Footer logo

Essentials

Open AccountPayment MethodsDownload MT4

Trading

MarketsAccount TypesPlatformsTools

Education

Axi AcademyFree eBooksBlog

Legal

Legal DocumentationProduct ScheduleClient AgreementComplaints HandlingPrivacy PolicyWebsite Terms & ConditionsNotice of Automated & Autonomous Systems Operations Notice

Client support

Request a callbackWhatsAppHelp Centre

AxiCorp Financial Services Pty Ltd (DIFC Branch) is regulated by the Dubai Financial Services Authority (DFSA) and holds a category 4 license with a 'Retail' endorsement and is not authorized to hold client assets or client money. Therefore the client money rules do not apply to the business currently undertaken by AxiCorp Financial Services Pty Ltd (DIFC Branch).

Axi is a brand name of AxiCorp Financial Services Pty Ltd (AxiCorp). AxiCorp (ACN 127 606 348) is authorised and regulated by the Australian Securities & Investments Commission (ASIC) AFSL number 318232.

Investing in over-the-counter derivatives carries significant risks and is not suitable for all investors. You could lose your initial investment. Retail Clients of AxiCorp Financial Services Pty Ltd are given the added protection of negative balance protection. This means that you cannot lose more than the amount of money invested with us. Investing in CFDs does not provide any entitlement, right or obligation to the underlying financial asset.

Information contained on this website is of a general nature only. AxiCorp does not consider your financial objectives or personal circumstances. AxiCorp recommends that you seek independent advice.

All services are provided on an execution-only basis and no communication should be construed as a recommendation to buy, hold or sell any of the financial products issued by AxiCorp.

A Product Disclosure Statement (PDS) for our financial products and our Financial Services Guide (FSG) are available at www.axi.com or can be obtained free of charge by calling AxiCorp on 1300 888 936 (+61 2 9965 5830). The PDS and FSG are important documents and should be reviewed prior to deciding whether to acquire, hold or dispose of AxiCorp’s financial products.

© 2026