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Forex trading, the buying and selling of currency pairs, powers the world's largest financial market. Average daily over-the-counter (OTC) turnover reached $9.6 trillion in April 2025 according to the BIS Triennial Central Bank Survey. If you already trade crypto, you have more transferable skills than you might think: chart reading, leverage management and 24-hour market psychology all apply directly. This guide covers forex fundamentals, what moves prices, how forex compares to crypto and how to get started on Bybit.
Key takeaways:
Forex is the world’s largest financial market, with average daily OTC turnover reaching $9.6 trillion in April 2025.
Forex trades 24/5 across Sydney, Tokyo, London and New York sessions, making session timing key to liquidity and volatility.
Bybit TradFi gives crypto traders access to 300+ TradFi instruments, including forex pairs, metals, indices and stocks.
Forex, short for foreign exchange, is the decentralized global marketplace where currencies are bought and sold. There is no central exchange. Trading happens over the counter (OTC), meaning directly between participants through a network of banks, brokers and electronic platforms.
Every forex trade involves a currency pair: a base currency and a quote currency. For example, EUR/USD represents the euro (base) priced against the US dollar (quote). When you buy EUR/USD, you are buying euros while simultaneously selling dollars. When you sell, you do the reverse. The price tells you how many units of the quote currency one unit of the base currency buys.
The scale of the forex market dwarfs other financial markets. Participants range from central banks and multinational corporations managing currency exposure to institutional investors and retail traders seeking profit from price movements.
Every forex trade is simultaneously a buy and a sell. When you go long on EUR/USD, you profit if the euro strengthens against the dollar and lose if it weakens. When you go short, the reverse applies. Profit and loss are measured in pips, the smallest standardized price increment for a currency pair, typically the fourth decimal place for most pairs (e.g., a move from 1.0850 to 1.0851 is one pip).
Trade size is measured in lots. A standard lot equals 100,000 units of the base currency. Mini lots (10,000 units) and micro lots (1,000 units) let smaller accounts participate. Combining lot size with pip value gives your per-pip profit or loss in dollar terms.
Worked example: You buy one mini lot of EUR/USD at 1.0850 and close at 1.0900. That is a 50-pip gain. With a mini lot, each pip is worth approximately $1, so your gross profit is $50. If you had used a standard lot, the same move would be worth $500.
Forex pairs fall into three categories:
Major pairs: EUR/USD, GBP/USD and USD/JPY. These are the most traded, most liquid and carry the tightest spreads.
Minor pairs (cross pairs): EUR/GBP, AUD/NZD and EUR/JPY. These do not include the US dollar and carry slightly wider spreads.
Exotic pairs: USD/TRY, EUR/ZAR and similar pairings of a major currency with an emerging market currency. Higher potential volatility, wider spreads and less liquidity.
Unlike crypto, where narrative and sentiment can dominate price action, forex prices are heavily influenced by macroeconomic fundamentals. Five main forces drive exchange rates.
Interest rate differentials are the most powerful long-term driver. When the Federal Reserve raises rates while the European Central Bank holds, dollar-denominated assets become more attractive, pushing USD higher against EUR. Carry traders exploit this by borrowing low-yield currencies (like JPY) to buy high-yield ones, a strategy that can unwind rapidly when risk sentiment shifts.
Economic data releases, including non-farm payrolls, consumer price index (CPI), gross domestic product (GDP) and purchasing managers' index (PMI), cause immediate volatility. The market often trades the expectation before the release and then re-prices when the actual figure prints. A stronger-than-expected reading on US jobs data, for instance, can send the dollar sharply higher in seconds.
Central bank communications shape expectations about future rate paths. Forward guidance, press conferences and policy statements from the Fed, ECB or Bank of England regularly move markets more than the rate decisions themselves.
Geopolitical events, including conflicts, elections, trade disputes and sanctions, trigger safe-haven flows. USD, JPY and CHF tend to strengthen in risk-off environments as investors seek stability.
Risk sentiment acts as a tide that lifts or lowers entire groups of currencies. Risk-on environments (strong equities, low volatility) tend to favor commodity-linked currencies like AUD and NZD. Risk-off environments reverse that flow toward safe havens.
Unlike crypto's continuous 24/7 market, forex operates on a 24-hour weekday schedule structured around four overlapping geographic sessions.
Session | Opens (UTC) | Closes (UTC) | Key pairs |
|---|---|---|---|
Sydney | 10:00 PM | 7:00 AM | AUD, NZD |
Tokyo | 12:00 AM | 9:00 AM | JPY, AUD |
London | 8:00 AM | 5:00 PM | EUR, GBP |
New York | 1:00 PM | 10:00 PM | USD, CAD |
The London–New York overlap (1:00 PM–5:00 PM UTC) is the highest-volume window of the trading day. Both major financial centers are active simultaneously, producing tighter spreads and sharper price moves on EUR/USD, GBP/USD and USD/JPY.
Crypto traders accustomed to round-the-clock markets will find the weekday-only schedule the most significant operational difference. Forex markets close on Friday evening UTC and reopen Sunday evening, meaning weekend gaps can occur at the open if major news breaks over the weekend.
Crypto traders transitioning to forex will find the learning curve shorter than expected. Technical analysis tools (candlestick patterns, support and resistance levels, moving averages and relative strength index) work the same way across both markets. Leverage management, position sizing and stop-loss discipline are equally critical in both.
Feature | Forex | Crypto |
|---|---|---|
Market hours | 24/5 (Mon–Fri) | 24/7 |
Daily volume | $9.6T (OTC, Apr 2025) | Varies by exchange |
Volatility | Generally lower (major pairs) | Generally higher |
Leverage | Up to 500:1 on select pairs | Varies by exchange and instrument |
Regulation | Regulated in many major jurisdictions | Evolving regulatory landscape |
Liquidity | Very deep on major pairs | Varies widely by token |
Technical analysis | Highly applicable | Highly applicable |
Fundamental drivers | Macro, rates, data | Narrative, adoption, tokenomics |
The key behavioral differences are in the fundamental drivers. Crypto prices respond to protocol upgrades, token unlocks, regulatory news and community sentiment. Forex prices respond to interest rate decisions, economic data and geopolitical shifts. Understanding both broadens your read of the broader risk environment, and each market can serve as context for the other.
Most forex strategies will feel familiar to active crypto traders. Scalping involves very short-term trades lasting seconds to minutes, targeting small pip gains with high frequency. Day trading means opening and closing positions within the same session, avoiding overnight exposure. Swing trading holds positions for days to weeks, targeting larger moves driven by technical setups. Position trading takes a longer-term view, holding for weeks or months based on macroeconomic fundamentals like diverging central bank policies.
Crypto traders who already swing trade BTC or ETH futures will find the transition to forex swing trading the most natural starting point.
Leverage is standard in forex, but it amplifies losses as much as it amplifies gains. At 500:1 leverage, even a 0.2% adverse move can consume the margin allocated to a position. Robust risk management is not optional.
Key principles to apply:
Stop-losses on every trade. Determine your exit before you enter. Forex can gap at session opens, so stops reduce (but do not eliminate) tail risk.
Size positions around risk, not conviction. A common rule is to risk no more than 1–2% of your account per trade, regardless of how confident you feel.
Understand margin closeout. If adverse price movements reduce your account equity below the required margin level, the platform may automatically close one or more positions. This functions similarly to liquidation in crypto perpetual futures.
Forex trading involves significant risk of loss, particularly when using leverage. Past performance is not indicative of future results. Only trade with capital you can afford to lose.
Bybit's TradFi platform is built on MetaTrader 5 (MT5) and provides access to 300+ TradFi instruments, including forex pairs, metals, indices and stocks. Eligible users can trade forex through contracts for difference (CFDs), which allow them to speculate on currency pair price movements without owning the underlying currencies. TradFi products can be accessed through an existing Bybit account, with USDT used as margin for eligible instruments.
Two account modes are available. Zero-Fee Mode embeds costs into the spread with no per-lot commission, which is straightforward for traders who prefer simplicity. Tight-Spread Mode offers narrower spreads with a fixed per-lot commission, which can reduce costs for high-frequency or large-volume traders. Leverage of up to 500:1 is available on select forex pairs, though availability varies by instrument, account mode and region.
For traders new to forex, Bybit's Copy Trading TradFi feature lets you follow verified master traders and mirror their positions automatically, a low-friction way to gain exposure while you develop your own strategy. The TradFi Combo Bot adds automated strategy execution for those who prefer a systematic approach.
Forex is the world's largest and most liquid financial market, and crypto traders may already have several transferable skills, from chart reading and position sizing to managing volatility. The main adjustment is learning how macro drivers such as interest rates, economic data and central bank policy affect currency pairs.
Adding forex to your trading toolkit can provide another way to read global risk sentiment and diversify beyond crypto-only markets. Bybit TradFi offers forex CFDs as a natural extension of the crypto trading experience.
Ready to explore? Head to Bybit TradFi to get started.
There is no universal minimum for forex trading. On Bybit TradFi, requirements vary by account mode and instrument. Starting with a smaller amount and scaling up once you are comfortable with the mechanics is a practical approach for beginners.
A pip is the smallest standardized price movement in a currency pair. For most pairs, it is the fourth decimal place, so a move from 1.0850 to 1.0851 is one pip. For JPY pairs, a pip is the second decimal place. Pip value in dollar terms depends on your lot size.
Forex trading is challenging for beginners, and many retail traders struggle with consistency, especially when using high leverage. Profitability depends on education, disciplined risk management and practical experience. Starting with a demo account, keeping leverage low and risking only small amounts per trade gives beginners the best chance of developing consistently.
Yes. Bybit's TradFi platform lets you trade forex pairs, metals, indices and stocks alongside your crypto positions from your existing Bybit account.
Major pairs (EUR/USD, GBP/USD and USD/JPY) are the standard starting point for beginners. They carry the highest liquidity, tightest spreads and the most widely available analysis and educational content. Exotic pairs offer higher potential volatility but come with wider spreads and less predictable price behavior, making them better suited for experienced traders.
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