Chike was a fresh graduate in Nigeria with a passion for finance.
Tired of job hunting and with billings eroding his savings, he stumbled on Forex during a YouTube binge.
“If people are making money trading currencies, why can’t I?” he wondered.
That single moment launched his journey into the world’s largest financial market.
Like Chike, many Nigerians are now turning to Forex.
Not as a get-rich-quick scheme, but as a real skill that can open doors to global wealth.
Whether you’re here out of curiosity or ready to dive in, this guide breaks it all down – from the basics to what you need to start Forex in 2025.
What is Forex?
Forex (short for foreign exchange) is the global marketplace where currencies are traded.
Whether it’s dollars, euros, pounds, or naira, currencies are always being bought and sold in pairs.
The Forex market was officially established in 1971.
This was when the gold standard collapsed and countries moved to a system of floating exchange rates.
Forex is the largest financial market in the world.
As of 2022, it has processed over $7.5 trillion daily, according to BIS reports.
It operates 24 hours a day, 5 days a week, across different global trading sessions:
Sydney → Tokyo → London → New York.
This makes Forex ideal for Nigerians looking to trade around flexible hours, even after a 9–5 job.
Who Trades Forex?
- Central banks and governments
- Banks
- Corporations
- Retail traders like Chike, you, and I
But before you set out, let’s look at the terms used in Forex to help you navigate the Forex world.
Read them below.
Common Forex Terms for Beginners
Understanding these terms is your first step to fluency in Forex:
| Term | Meaning |
|---|---|
| Currency Pair | The difference between the bid (sell) and ask (buy) price, essentially the broker’s fee. |
| Base Currency | The first currency in a pair (e.g., EUR in EUR/USD). |
| Quote Currency | The second currency in a pair (e.g., USD in EUR/USD). |
| Pip (Point in %) | The smallest unit of price movement, usually 0.0001 (except in JPY pairs = 0.01). |
| Lot | A standard unit of trade. 1 lot = 100,000 units of the base currency. |
| Mini Lot | 10,000 units of the base currency (0.1 lot). |
| Micro Lot | 1,000 units of the base currency (0.01 lot). |
| Leverage | Allows you to control larger trades with small capital (e.g., 1:100 leverage). |
| Margin | The money required in your account to open a leveraged trade. |
| Spread | The difference between the bid (sell) and ask (buy) price. It is essentially the broker’s fee. |
| Bid Price | The price at which the broker is willing to buy the base currency (You are selling). |
| Ask Price | The price at which the broker is willing to sell the base currency (You are buying). |
| Stop Loss (SL) | A preset level to automatically close a losing trade to limit losses. |
| Take Profit (TP) | A preset level to automatically close a profitable trade to lock in gains. |
| Long Position | Buying the base currency and expecting it to rise in value. |
| Short Position | An order to buy/sell at a later time when the price reaches a specified level. |
| Order | A command to open or close a trade at a specified price. |
| Market Order | An order to buy/sell immediately at the current market price. |
| Pending Order | The total value of your trading account, including floating profits or losses. |
| Slippage | The difference between the expected price and the executed price due to market movement. |
| Swap/Overnight Fee | A charge or credit for holding a position overnight, based on interest rate differences. |
| Equity | Your account value, excluding open trades. |
| Balance | Your account value excluding open trades. |
| Free Margin | Software (like MT4 or MT5) is used to execute and manage trades. |
| Margin Call | A warning from your broker that your equity is too low to maintain open trades. |
| Drawdown | The difference between your highest balance and current equity. It shows a loss from the peak. |
| Risk-Reward Ratio | A comparison of potential loss to potential gain in a trade (e.g., 1:2). |
| Volatility | The measure of how much the price moves. High volatility means more risk and opportunity, and vice versa. |
| Liquidity | How easily a currency pair can be bought/sold without major price changes. |
| Technical Analysis | Analyzing charts, indicators, and price patterns to forecast movements. |
| Fundamental Analysis | Evaluating news, economics, and central bank policies to predict price moves. |
| Economic Calendar | A schedule of market-moving news and events (like NFP, CPI, interest rates). |
| Broker | A company that gives you access to the Forex market through a trading platform. |
| Trading Platform | Your account value, excluding open trades. |
| Demo Account | A practice trading account using virtual money to test strategies risk-free. |
| Live Account | A real-money account where actual profits and losses occur. |
You will get to understand them better as you progress in Forex.
Next, I will be listing for you all the things needed to start trading forex.
Keep reading.
What You Need to Trade Forex
If you’re in Nigeria and want to start trading Forex in 2025, here’s what you’ll need:
1. A Reliable Forex Broker
Look for regulated brokers offering low spreads, local deposit options, and Naira support.
You can pick from these:
You can also check out options from this post.
2. Trading Platform (MT4 or MT5)
MetaTrader 4 and 5 (MT4 and MT5) are the most popular platforms.
They’re free, and brokers often offer them for both mobile and desktop.
3. Good Internet Connection
Latency matters.
A stable internet connection helps you enter and exit trades without delay.
4. Capital
Of course, money – it makes the world go round😀
You can start small.
Many brokers allow micro accounts from as low as ₦5,000 – ₦20,000.
5. Trading Knowledge and Strategy
Forex is skill-based.
Learn technical analysis, practice with a demo account, and manage your risk wisely.
Keep up with us on the Nigeria Bitcoin Community blog, our Forex channel, and X platform as we delve deeply into Forex.
So these are the 5 things you need to start up first.
The other requirements come up when you get into Forex.
Now, I know you might have some questions and concerns about Forex.
I addressed some of them in the FAQ section below.
Frequently Asked Questions About Forex
Here are a few FAQs I can take for this post.
Yes.
While Forex is not directly regulated by the CBN, it is legal to trade with international brokers.
Yes—but only with the right mindset, skill, and risk management.
Just like crypto, it is not a guaranteed money machine.
With consistent learning and practice, many beginners begin to find consistency in 6–12 months.
A demo account uses virtual money for practice.
A live account involves real funds and emotions, especially fear and greed.
Forex is about trading government-issued currencies(e.g., USD, EUR, JPY, etc.) in a highly liquid, regulated market.
Crypto is about trading digital assets (e.g., BTC, ETH, SOL, etc.) in a fast-moving, often unregulated environment.
I will be rounding up now, so it doesn’t get too long.
If you have more questions, leave them for me in the comment box below.
Conclusion
Forex isn’t magic—it’s a real skill.
In 2025, Nigerians will have more access than ever to trade global currencies.
All thanks to mobile trading apps, low capital requirements, and forex communities like ours.
As you start your journey, remember: your first goal isn’t to make millions—it’s to learn how not to lose.
Take your time, ask questions, and connect with the Nigeria Bitcoin Community.
If Chike could begin with no experience and build his skills, so can you!💪
Share this post to help other beginners navigate Forex easily.
In my next post, I will be showing you how to sign up and start trading Forex step-by-step.
See you then!
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