Level 1 - Crypto and forex
Crypto and forex basics
Learn why 24-hour markets, pairs, leverage and volatility need extra care.
Crypto markets
Crypto assets trade around the clock and can move sharply. Prices may react to liquidity, regulation, exchange risk, token design and broad risk appetite. Because many crypto assets are young and volatile, beginners should be careful with position size.
Forex markets
Forex means foreign exchange. Prices are quoted as pairs, such as EUR/USD, because one currency is valued against another. Forex often involves leverage, which can make small price moves create larger gains or losses.
What they have in common
Both crypto and forex can tempt beginners into overtrading because the markets are active for long hours. A written plan, limited risk per trade and a stop-loss idea are especially important when price moves quickly.
Practical example
If EUR/USD moves from 1.0800 to 1.0700, the euro weakened against the dollar. With leverage, that small-looking move can still produce a large account impact.
Important terms
Lesson quiz
Answer all 3 questions, then submit. You need 3/3 correct to unlock the next lesson.