You begin with the knowledge of what is actually traded in the currency trade. In the currency market what is traded are pairs of currencies. Here one currency is exchanged over the other at a specific rate. There are several pairs that are common in currency trade. They include: USD/GBP, GBP/EUR, USD/JPY and many more. The USD accounts for close to 85% of the volume traded in the currency forex market. As a beginner you need to familiarize yourself with the various currencies of the world so that you can choose which ones you want to trade in.
Currency trade has spreads. Normally the two terms used here are bid/ask. The bid which is the low price refers to the buying price that your broker will buy a pair of currency at. This means that as the seller this is the price you are supposed to sell at. The ask on the other hand is higher than the bid. It is the price that the broker is ready to sell at, this means the trader will buy at that price. If you have an interest in currency trade then you need to know these terms in deeper way so that you can fully participate in the trading of currencies.
Another basic principle you need to learn in currency trade is margin trading otherwise known as leverage. The forex market unlike other financial trades does not require a full deposit of what is traded. Your deposit is usually a margin of the total amount. The remaining amount is given by your currency trade broker. You are advised however not to open a trading position with limited funds. This is because currency trade may go against them there will be a closure of such a trading position by your broker.
To conclude you need to know the mechanics of currency trade. You need to analyze the forex market in an extensive way to know how to go about your currency operations. For example after analyzing the market you might decide that the USD has a probability of going up. Thus as a trader you can decide to risk 20 pips for a target of 40 pips. If the forex market goes against you will lose the 20 pips but if it works out for you will get the 40 pips. It is important that you understand all the basic aspects of currency trade.