The first time I heard the word forex, I was sitting at my desk in my old software office. I had a good job, a car I loved, and a family I thought I’d grow old with. Back then, I didn’t think much about currency pairs or charts — I was just trying to meet deadlines and keep life together.
Fast forward a few years, and life… well, life had other plans. My business was gone. My family had changed. I was out on the road delivering food for Zomato, watching the streets where I once drove my Verna now from the seat of a scooter. Every day, I saw people rushing somewhere, chasing something. And deep inside, I wanted to chase something too — not food orders, but a way back to the life I’d lost.
That’s when forex came back into my life.
Why I Started Learning Forex
Forex — short for foreign exchange — is the world’s largest financial market. It’s where people, banks, and companies exchange currencies 24 hours a day. But for me, it wasn’t just a market; it was hope.
I didn’t have millions to invest. I didn’t have Wall Street contacts. What I had was a phone, a laptop, and an internet connection. I had time during my delivery shifts to watch charts and learn. And I had one more thing: a burning need to make sure my kids remember me not just as the man who “used to” have a life, but as someone who fought his way back.
But before I could make a single trade, I had to understand some basic forex terms. And trust me — they sounded like another language at first.
Understanding the Base Currency
Let’s start with the one that confused me most in the beginning: base currency.
When you see a forex pair like EUR/USD, the currency on the left (EUR) is the base currency. The one on the right (USD) is the quote currency.
If EUR/USD is at 1.1000, it means 1 euro is worth 1.10 US dollars. The base currency is always “1 unit” in your head — the quote currency tells you how much that “1 unit” is worth.
At first, I thought this was just a technicality. But here’s why it matters:
- The base currency is what you’re buying or selling.
- If you buy EUR/USD, you’re buying euros and selling dollars.
- If you sell EUR/USD, you’re selling euros and buying dollars.
I remember making my first tiny trade on EUR/USD, thinking I was just “buying the dollar.” Nope. I was buying euros and selling dollars — the exact opposite of what I thought. That’s why understanding the base currency is step one.
Other Forex Terms That Finally Made Sense
Once I got the base currency right, other words started to fall into place:
1. Currency Pair
In forex, you always trade one currency against another. That’s why they’re written in pairs — GBP/JPY, USD/CHF, AUD/NZD.
It’s like a seesaw. When one goes up, the other goes down (relative to each other).
2. Pip
A “pip” is a tiny measurement of price movement, usually the fourth decimal place in most pairs.
Example: If EUR/USD moves from 1.1000 to 1.1001, that’s 1 pip.
Why it matters: Your profit or loss depends on how many pips the market moves in your favor or against you.
3. Lot Size
A “lot” is how much you’re trading.
- Standard lot = 100,000 units of the base currency
- Mini lot = 10,000 units
- Micro lot = 1,000 units
I started with micro lots because blowing $1 is a lot easier to handle than blowing $100 in one bad move.
4. Bid and Ask
The “bid” price is what buyers are willing to pay. The “ask” price is what sellers want. The difference is called the spread.
The spread is how brokers make money, so lower spreads usually mean cheaper trading.
5. Leverage
Leverage lets you control a larger trade than the money you actually have. For example, with 1:100 leverage, $100 of your money can control $10,000 worth of currency.
It’s powerful… and dangerous. I learned that the hard way when my $20 trade turned into a $50 loss in minutes. Use it carefully.
Why People Trade Forex
I’ve met so many different people in forex communities — from college kids trading in dorm rooms to retirees keeping their minds sharp with the charts. Here’s why people jump into this market:
- It’s Always Open – The forex market runs 24 hours a day, Monday to Friday. Perfect for night owls like me who work late shifts.
- You Don’t Need a Fortune to Start – Many brokers let you start with as little as $10–$50.
- Leverage – It gives you the potential to earn big profits with small capital (but also big losses).
- No Middleman – You trade directly with the market via your broker.
- Global News Impact – You can literally watch a political event move the market in real time.
But for me? The reason is personal: I need a skill I can take anywhere, something that isn’t tied to an office or a boss who can fire me tomorrow.
The Emotional Side of Forex
Nobody really talks about this part. When you trade, you’re not just dealing with charts and numbers — you’re dealing with yourself.
Your fear, your greed, your patience (or lack of it) will decide your success more than any fancy indicator. I’ve had days where I made more in an hour than in a whole shift delivering food… and days where I lost in minutes what took me two days to earn on the road.
The difference is mindset. You have to treat forex like a business, not a lottery ticket.
My Advice for Beginners
- Learn First, Trade Later – I watched videos, read articles, and practiced on demo accounts for months before risking real money.
- Risk Small – Never risk money you can’t afford to lose. Even now, I risk no more than 1–2% of my account per trade.
- Keep a Journal – Write down why you took each trade and what happened. This will teach you more than any course.
- Respect the Base Currency – Always remember: you’re buying one currency and selling another.
- Stay Patient – One good trade can make your week.
Where I Am Now
I’m still learning. I’m still delivering food. But now, when I park my scooter between orders, I’m not just scrolling social media. I’m watching charts, reading news, and slowly building a skill that no one can take from me.
Maybe you’re in a similar spot. Maybe life knocked you down, and you’re looking for something — not a quick win, but a way to fight back. If that’s you, forex might just be worth your time.
It’s not easy. It’s not overnight. But it’s a market where knowledge is power, and power can change your life.
Your Next Step
If you’ve made it this far, you’re already ahead of most beginners. You’ve taken the time to understand base currency, currency pairs, and why forex attracts millions of traders worldwide.
Now, let’s keep that momentum.
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💬 Pro Tip: Bookmark this page so you can revisit these terms whenever you feel lost in the charts. The more familiar they become, the faster you’ll trade with confidence.
