EUR/USD at 1.1000 means one euro costs 1.10 US dollars. EUR is the base currency and USD is the quote currency. If EUR/USD rises to 1.1050, one euro buys more dollars.

For most major pairs, one pip is 0.0001. A move from 1.1000 to 1.1050 is 50 pips. For many yen pairs, a pip is 0.01. With a bid of 1.1000 and an ask of 1.1002, the spread is 2 pips.

Margin is the amount set aside to support a position. Leverage lets you control a position larger than the margin. At 20:1, $500 can support $10,000 in exposure. A 1% move in that exposure is about $100 before costs, in either direction.

In a demo account, note the bid, ask, order type and stop level before entering. After the trade, compare the expected price with the fill and record spread, commission and any financing.

Mark a series of higher highs and higher lows for an uptrend. In a demo, wait for a pullback and define the price that would invalidate the setup before entering. Track whether the trend resumed and how the result changes after costs.

Mark a support and resistance zone that price has revisited. Decide what would qualify as a rejection of the edge. A sustained break outside the range invalidates the setup. Log whether apparent bounces were visible before entry.

Define a level before price reaches it. A possible confirmation rule is a candle close beyond the level, or a retest that holds. Fast moves can widen spreads, and a break can reverse. Record false breakouts as well as successful ones.

Write down market conditions, entry, exit, invalidation and costs. Replay historical examples without looking ahead, then demo-test the same rules. Keep losses and skipped setups in the sample.

Multiply account equity by the percentage you choose to risk. For example, $2,000 × 0.5% gives a $10 planned risk budget. Then estimate position size using stop distance and the pip value per lot in your account currency.

Choose the price that invalidates the trade, then size the position for that stop distance. A stop can fill beyond its trigger in fast or gapping markets. Spread, slippage, commission and financing can increase the loss.

Long EUR/USD and long GBP/USD both have short-US-dollar exposure. Track open positions together to see how one market move could affect them.

Record planned risk, actual fill, costs and the result. Review groups of trades for repeated errors, such as widening stops or increasing size after a loss.