forex-trading

> **Skill:** Forex Trading | **Domain:** trading | **Category:** asset-class | **Level:** beginner > **Tags:** `trading`, `asset-class`, `forex`, `pairs`, `pips`, `session-hours` # Forex Trading — Asset Class Reference ## Major Pairs & Characteristics | Pair | Nickname | Spread (avg) | Best Session | Volatility | |------|----------|--------------|--------------|------------| | EURUSD | Fiber | 0.1–0.6 pips | London/NY overlap | Medium | | GBPUSD | Cable | 0.3–1.0 pips | London open | High | | USDJPY | Ninja | 0.2–0.7 pips | Tokyo/London | Medium | | AUDUSD | Aussie | 0.2–0.8 pips | Sydney/London | Medium | | USDCAD | Loonie | 0.3–1.0 pips | NY session | Medium | | USDCHF | Swissie | 0.3–1.0 pips | London/NY | Medium | ## Pip Value Calculator ```python def pip_value(pair: str, lot_size: float, account_currency: str = "USD") -> float: """Standard pip values for 1 standard lot (100,000 units).""" pip_sizes = { "EURUSD": 0.0001, "GBPUSD": 0.0001, "AUDUSD": 0.0001, "USDCAD": 0.0001, "USDCHF": 0.0001, "USDJPY": 0.01, "XAUUSD": 0.01, "XAGUSD": 0.001, } pip = pip_sizes.get(pair.upper(), 0.0001) # For USD-quoted pairs: pip_value = pip * lot_size * contract_size return pip * lot_size * 100_000 ``` ## Session Hours & Liquidity Windows | Session | UTC Open | UTC Close | Key Pairs | |---------|----------|-----------|-----------| | Sydney | 22:00 | 07:00 | AUDUSD, NZDUSD | | Tokyo | 00:00 | 09:00 | USDJPY, AUDJPY | | London | 07:00 | 16:00 | GBPUSD, EURUSD | | New York | 12:00 | 21:00 | All majors | | **London/NY Overlap** | **12:00** | **16:00** | **Highest volume — best for scalping** | ## Carry Trade Framework ```python def carry_trade_screen(pairs: list, rates: dict) -> list: """Find best carry pairs: borrow low-rate currency, invest high-rate.""" results = [] for pair in pairs: base, quote = pair[:3], pair[3:] carry = rates.get(base, 0) - rates.get(quote, 0) results.append({"pair": pair, "carry_pct": round(carry, 2), "direction": "LONG" if carry > 0 else "SHORT"}) return sorted(results, key=lambda x: abs(x["carry_pct"]), reverse=True) ``` ## Key Forex Risks - **Central bank risk**: Unexpected rate decisions cause 100+ pip moves - **Economic data risk**: NFP, CPI, GDP — trade around releases with caution - **Correlation risk**: EURUSD and GBPUSD often move together — don't double up - **Swap/rollover**: Holding past 22:00 UTC server time incurs overnight swap fees ## Exness MT5 Pip Sizes (your broker) ```python PIP_SIZES = { "EURUSDm": 0.0001, "GBPUSDm": 0.0001, "USDJPYm": 0.01, "AUDUSDm": 0.0001, "USDCADm": 0.0001, "USDCHFm": 0.0001, "XAUUSDm": 0.1, "XAGUSDm": 0.01, } ``` --- ## Related Skills - [Session Strategies](../session-scalping.md) - [Ict Smart Money](../ict-smart-money.md) - [Cross Asset Relationships](../cross-asset-relationships.md) - [Liquidity Analysis](../liquidity-analysis.md)