The Foreign Exchange Market
Forex (Foreign Exchange) is the global marketplace where currencies are bought and sold. It is the largest and most liquid financial market in the world, with over $7.5 trillion traded every single day — that is more than all the world's stock markets combined.
Unlike the stock market, forex has no central exchange. It operates 24 hours a day, 5 days a week, across financial centers in London, New York, Tokyo, and Sydney. When one market closes, another opens — meaning you can trade at almost any time.
Simple example: Imagine you are travelling from the US to Europe. You exchange your US Dollars for Euros at the airport. That exchange — one currency for another — is the core of forex trading. Traders do this at scale, millions of times per day, profiting from small price movements.
Who Trades Forex?
The forex market is made up of different types of participants:
🏦 Central Banks — Governments control monetary policy and intervene in currency markets to stabilize their economies.
🏢 Commercial Banks — Large banks like JPMorgan and Deutsche Bank handle the majority of forex transactions for clients and their own trading desks.
🏭 Corporations — A company importing goods from another country needs to exchange currencies to pay suppliers.
👤 Retail Traders — That is you. Individual traders access the market through a broker, speculating on price movements to generate profits.
How Do You Make Money in Forex?
You profit by correctly predicting whether one currency will rise or fall against another. If you believe the Euro will strengthen against the US Dollar, you BUY EURUSD. If it goes up, you profit. If you think it will fall, you SELL EURUSD.
⚠️ Important: Forex trading involves risk. Prices can move against you. This is why risk management (covered in Module 3) is the most important skill you can learn as a beginner.
With Elora AI, signals are researched and executed for you — but understanding the market helps you appreciate why trades are taken and builds your confidence as a trader.
What is a Currency Pair?
In forex, currencies are always traded in pairs — you are simultaneously buying one currency and selling another. Every pair has two parts:
📌 Base Currency — the first currency in the pair (what you are buying or selling)
📌 Quote Currency — the second currency (what you are paying or receiving)
Example: GBPUSD = 1.2750
This means 1 British Pound buys 1.2750 US Dollars. If you BUY GBPUSD, you are buying Pounds and selling Dollars. If the price rises to 1.2800, each Pound is worth more Dollars — you profit.
The Three Categories of Pairs
🟡 Majors — Pairs that always include the USD. Most traded, tightest spreads, most news coverage. Best for beginners.
🔵 Minors (Crosses) — Pairs without USD. Still liquid but slightly wider spreads. Examples: GBPJPY, EURGBP.
🟣 Commodities & Exotics — XAUUSD (Gold) is treated like a forex pair. Exotics pair a major currency with a smaller economy's currency — higher risk, wider spreads.
What is a Pip?
A pip is the smallest standard price move in a currency pair. For most pairs, it is the 4th decimal place. If EURUSD moves from 1.10500 to 1.10510, that is 1 pip. For USDJPY and Gold (XAUUSD), 1 pip = 1 full point.
💡 Elora AI focuses on XAUUSD (Gold) — one of the most volatile and profitable instruments when traded with a disciplined strategy. Gold moves fast, which means both larger profits and the need for careful risk management.
The Price Quote
Every time you look at a currency pair, you see two prices side by side. These are the Bid and the Ask:
EURUSD 1.08542 / 1.08558
The first number (1.08542) is the Bid — the price the broker buys from you. This is where you SELL.
The second number (1.08558) is the Ask — the price the broker sells to you. This is where you BUY.
The Spread
The spread is the difference between the Bid and Ask price. It is how brokers make their money — there is no commission, just this small gap.
In the example above: 1.08558 − 1.08542 = 0.00016 = 1.6 pips
Tighter spreads = cheaper to trade. Major pairs like EURUSD typically have spreads of 0.1–2 pips. Exotic pairs can have spreads of 10–50 pips.
⚠️ You start every trade slightly in the negative because of the spread. If you BUY EURUSD at 1.08558, the market needs to rise at least 1.6 pips before you are breakeven. This is why low-spread brokers matter.
Bid vs Ask — Quick Reference
Think of it like exchanging cash at the airport. They buy from you at a lower rate and sell to you at a higher rate. The gap between the two is their profit — that is the spread.
What is a Pip?
A pip (Percentage in Point) is the standard unit of measurement for price movement in forex. For most pairs it is the 4th decimal place.
EURUSD moves from 1.10500 → 1.10510 = 1 pip
USDJPY moves from 110.00 → 110.01 = 1 pip (2nd decimal for JPY pairs)
XAUUSD moves from 2315.00 → 2316.00 = 1 pip (1 full dollar for Gold)
What is a Pipette?
A pipette is 1/10th of a pip — the 5th decimal place. Brokers like TradeLocker quote prices to 5 decimal places for precision. You will see prices like 1.10542 — the last digit (2) is a pipette.
Lot Sizes — How Much Are You Trading?
A lot is the standard unit of trade size in forex. There are four types:
For XAUUSD (Gold), 1 standard lot = 100 troy ounces. A $1 move in gold price = $100 profit or loss per standard lot. This is why lot sizing matters so much with Gold — it moves fast.
💡 Beginners should start with micro lots (0.01) until they are comfortable with how positions move. Elora AI automatically sizes your lots based on your account balance and tier.
What is Leverage?
Leverage allows you to control a large position with a small amount of money. It is expressed as a ratio — 100:1 means you control $100 for every $1 in your account.
Example: With $500 in your account and 100:1 leverage, you can open a position worth $50,000. A 1% move in your favor = $500 profit (doubling your account). But a 1% move against you = $500 loss (wiping your account).
What is Margin?
Margin is the deposit your broker holds as collateral when you open a leveraged trade. It is NOT a fee — it is your own money, reserved to cover potential losses.
Margin Call & Stop Out
If your losses eat into your margin, the broker will issue a margin call — a warning that your free margin is running low. If losses continue and your margin level drops to the stop-out level, the broker automatically closes your trades to prevent a negative balance.
⚠️ Leverage is a double-edged sword. It amplifies both profits AND losses. A 100:1 leverage means a 1% move against you can wipe your account. This is why proper lot sizing and stop losses are non-negotiable. Never use maximum leverage on a small account.
Elora AI sizes positions conservatively — 0.5% to 3% risk per trade — specifically to protect your account from overleveraging, even when higher leverage is available.
Going Long — Buying
When you go long, you are buying a currency pair because you believe the base currency will rise in value against the quote currency.
Example — BUY GBPUSD at 1.2700
You believe the British Pound will strengthen against the US Dollar.
If GBPUSD rises to 1.2750, you made 50 pips profit.
If it falls to 1.2650, you have a 50 pip loss.
Going Short — Selling
When you go short, you are selling a currency pair because you believe the base currency will fall in value. In forex, you can profit in both directions — up AND down.
Example — SELL EURUSD at 1.0850
You believe the Euro will weaken against the US Dollar.
If EURUSD falls to 1.0800, you made 50 pips profit.
If it rises to 1.0900, you have a 50 pip loss.
Key Differences at a Glance
Every Elora AI signal specifies BUY or SELL. When you see a signal, this is telling you whether the strategy has identified an upward (BUY) or downward (SELL) opportunity.
Market Orders
A market order executes immediately at the current market price. It is the fastest way to enter or exit a trade — you get filled at whatever the best available price is right now.
Best for: Entering a trade quickly when timing matters. Elora AI signals use market orders so your copy trade executes at the same time as the master account.
Limit Orders
A limit order lets you set a specific price at which you want to enter a trade. The order only fills if the market reaches your specified price.
📌 Buy Limit — Set below current price. You are waiting for the price to pull back to your level before buying.
📌 Sell Limit — Set above current price. You are waiting for the price to push up to your level before selling.
Example: XAUUSD is trading at $2,350. You want to buy at $2,320 (a support level). You set a Buy Limit at $2,320. If gold dips to $2,320, your order fills automatically — even while you are asleep.
Stop Orders
A stop order becomes a market order once price reaches a specific level. Used to enter breakouts or protect profits.
📌 Buy Stop — Set above current price. You believe if price breaks higher it will keep going.
📌 Sell Stop — Set below current price. You believe if price breaks lower it will keep falling.
📌 Stop Loss — A sell stop used to automatically close a losing trade at a maximum acceptable loss.
⚠️ Every trade you open should have a Stop Loss. A stop loss is not optional — it is the most basic form of account protection. Without one, a single bad trade can cause catastrophic losses.
Take Profit Orders
A take profit automatically closes your trade when it reaches your profit target. It locks in your gains without you needing to watch the screen. Combined with a stop loss, it lets the trade run on autopilot.
Elora AI signals include both a Stop Loss and Take Profit level on every trade. These are set automatically when the signal copies to your account.
The #1 Rule — Protect Your Capital First
Most beginners focus on making money. Professionals focus on not losing it. A trader who loses 50% of their account needs a 100% gain just to get back to even. Protect your downside and the upside takes care of itself.
The golden rule: Never risk more than 1-2% of your account on a single trade. With this rule, even 10 straight losses only costs you 10-20% — you survive, recover, and keep trading.
How Elora AI Manages Risk on XAUUSD
Every signal that copies to your account uses a fixed percentage of your balance as the risk amount. Your lot size is calculated automatically so that if the Stop Loss is hit, you only lose that percentage — nothing more.
XAUUSD — What You Need to Know
Gold (XAUUSD) is quoted in US Dollars per troy ounce. On Genesis FX, 1 standard lot = 100 oz of gold. A $1 move in the gold price = $100 profit or loss per standard lot.
Elora AI signals on XAUUSD typically use a 100 pip stop loss (= $10 per 0.01 lot) and target a 2.5:1 reward-to-risk ratio, meaning a 250 pip take profit.
Real example — $500 account, Bronze tier (0.5% risk):
Risk amount = $500 × 0.5% = $2.50
Stop Loss = 100 pips ($1.00 move per 0.01 lots)
Lot size = $2.50 ÷ (100 × $10) = 0.025 → 0.03 lots
Take Profit = 250 pips → +$75.00 profit at TP
Max loss if SL hit → -$2.50 (0.03 lots × 100 pips × $10 = $30 actual due to min lot)
Live XAUUSD Risk Calculator
XAUUSD Position Size Calculator
Stop Loss, Take Profit & R:R
Stop Loss (SL) — closes your trade automatically if price moves against you by X pips. Non-negotiable on every trade.
Take Profit (TP) — closes your trade automatically when it hits your profit target. Locks in gains without emotion.
Reward:Risk Ratio — aim for at least 2:1. Elora AI targets 2.5:1 on Gold. This means you need to be right only 29% of the time to be profitable long-term.
⚠️ Never move your stop loss wider to avoid being stopped out. That is not protecting yourself — it is hoping. Trust your pre-planned risk and let the trade play out.
The Role of a Broker
A broker is the company that gives you access to the forex market. As a retail trader, you cannot trade directly on the interbank market — you need a broker as your intermediary. The broker provides you with:
📱 A trading platform — software to execute trades, view charts, and manage positions
💰 Leverage — the ability to control large positions with a smaller deposit
📊 Market access — real-time prices across forex, commodities, indices and crypto
🔒 Account security — regulated brokers hold client funds in segregated accounts
What Makes a Good Broker?
Not all brokers are equal. Here is what to look for:
Regulation — Look for brokers regulated by top-tier authorities (FCA, ASIC, CySEC). This protects your funds.
Low Spreads — The spread is the difference between the buy and sell price. Lower = cheaper to trade.
Fast Execution — Orders should fill instantly at the price you see, with no requotes.
Reliable Withdrawals — You should be able to access your profits quickly and easily.
Good Support — Responsive customer service matters when you have an issue.
What is an IB (Introducing Broker)?
An Introducing Broker (IB) is a person or company that refers clients to a broker. When you sign up through an IB link like Elora AI's Genesis FX link, the IB receives a commission from the broker — at no extra cost to you. Your spreads, execution and service are identical to any other client.
Elora AI uses Genesis FX (TradeLocker) — a regulated, fast-execution broker built specifically for copy trading and algorithmic strategies. It is the ideal broker for members following Elora AI signals.
⚠️ Avoid unregulated brokers that promise unrealistic returns or make it difficult to withdraw. Always verify a broker's regulation before depositing.
Step-by-Step: Get Started with Elora AI
Follow these steps to open your account, fund it, and start receiving copy trades from Elora AI.
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1Register under the Elora AI IB link
Open your Genesis FX account using our link below. This is important — it must be done through this link for you to access the Elora AI copy trading service.
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2Verify your identity (KYC)
Genesis FX is a regulated broker. You will need to submit a government-issued ID and proof of address (utility bill or bank statement dated within 3 months). This usually takes 1-24 hours.
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3Make your first deposit (minimum $100)
Genesis FX accepts bank transfer, credit/debit card, and crypto. A minimum deposit of $100 is required to start. The more you deposit, the higher your tier and the larger your position sizes per signal.
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4Join the Elora AI Discord server
Join our community and run /connect in the Discord server. Enter your Genesis FX email and password to link your account. The bot will verify your deposit and approve you automatically.
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5You are live — signals copy automatically
Once approved, every Elora AI signal fires directly to your account. You do not need to do anything. Log into this dashboard to track your performance, switch to manual mode, or upgrade your tier.
Course Complete!
You now understand the foundations of forex trading, how to read currency pairs, why risk management protects your account, what to look for in a broker, and how to get started with Elora AI.
Welcome to the community.
How Signals Copy to Your Account
When Elora AI fires a signal, it copies automatically to every connected member's Genesis FX account — simultaneously. Your lot size is calculated based on your account balance and tier. You do not need to watch the screen or click anything.
The signal flow:
Master Account fires a trade ⚡
→ Elora AI bot receives the signal
→ Bot calculates your lot size based on balance + tier
→ Trade opens on your Genesis FX account instantly
→ When the master closes, your trade closes too
Connecting Your Account
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1Join the Elora AI Discord server
All signal activity, announcements, and bot commands live in Discord.
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2Run /connect in Discord
Type
/connectand enter your Genesis FX email and password. The bot verifies your account is funded and under the Elora AI IB link, then approves you automatically. -
3You are live — signals copy instantly
From this point on, every signal executes on your account. Log into this dashboard to monitor your performance in real time.
Use One Dedicated Account for Copy Trading
This is important: use a separate Genesis FX account specifically for Elora AI signals. Do not mix manual trades with copy trades on the same account.
⚠️ Why this matters: If you place manual trades on the same account as your copy trades, your track record becomes mixed — you cannot tell which results came from Elora AI signals and which came from your own trades. A clean account = a clean track record.
What is a Track Record?
A track record is the verified history of every trade taken on your account — win rate, average profit, drawdown, and total return. It is your proof of performance.
With a dedicated copy trading account, your dashboard automatically builds your track record over time:
Over time, a strong track record lets you upgrade your tier with confidence — because you can see exactly what the strategy has delivered on YOUR account.
Course Complete!
You now have everything you need — from understanding what forex is, to reading quotes, sizing positions on Gold, connecting to signals, and protecting your capital.
Welcome to Elora AI. Your account is working for you.
Watch the Jackpot Strategy 1 walkthrough for laptop and desktop users. This video covers how to read and execute signals using TradeLocker on your computer.
Watch the Jackpot Strategy 1 walkthrough for mobile users. This video covers how to use TradeLocker on your phone to follow and execute signals on the go.
Execution Mode
Choose how signals are copied to your account. You can change this at any time.
Account Details
Your connected Genesis FX / TradeLocker account information.
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| Account | — |
| Tier | — |
| Balance | — |
| Mode | — |
Manual Mode — When a signal fires, you get a popup on this dashboard AND a Discord DM with an Execute button. You have 15 minutes to approve each trade. Switch anytime in Settings.
Pick what works best for where you are right now. You can always upgrade later.
The freedom lifestyle. Trade from anywhere in the world.
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