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Market Foundations + Forex Mechanics · The Basics

Order types

Pick the right order for each scenario.

3 min read+25 XPLesson 7 of 110
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Market Foundations + Forex Mechanics

The Basics

Lesson 7 of 1106%
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Lesson 7 of 110Market Foundations + Forex MechanicsThe Basics

Today's tiny win: make one idea click.

Pick the right order for each scenario.

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Orders are instructions

An order is an instruction you send to your broker. A market order says: fill me now at the best available price. It is useful when the market is liquid and you care more about getting in than getting an exact price. During news, market orders can slip, which means your fill can be worse than the price you saw.

Three cards compare a market order that fills now, a limit order that fills at your price or better, and a stop order that waits for a trigger.MarketFill menow, bestpriceLimitThis priceor betterStopWaits for atriggerprice
Wick saysMarket orders care about the fill, limit orders care about price, stops wait for a trigger.

A limit order says: execute only at this price or better. If EUR/USD is above your planned buy level, a buy limit lets price come to you instead of chasing. A stop order says: execute if price reaches this level or worse. Stop orders are used for stop-losses and also for breakout entries.

A newspaper headline warns that market orders can slip in big news while the practice chart whips both ways, teaching that fast markets can give worse fills.MARKET NEWSBig news:market orderscan slipPractice chart
Wick saysDuring big news, a market order can slip and fill worse than the price you saw.

A stop-limit order is a stop order that becomes a limit order after the trigger. It protects you from filling at any price, but it creates a new risk: no fill if the market moves too fast. A trailing stop is a stop that moves with price in your favor. Brokers offer different names and variants, but the basic math is the same.

Wick points at a rising practice chart where a stop line steps up under each higher low, showing how a trailing stop moves along with a favorable move.Trailing stopPractice chartStop moves upPrice climbs
Wick saysA trailing stop follows price as it moves in your favor.

Recap: market for immediate execution, limit for price or better, stop for trigger-based execution, stop-limit for controlled price with no-fill risk, trailing stop to follow favorable movement.

Knowledge check

Answer before moving on.

0 / 3 answered

1. Which order type executes immediately at the best available price?

2. Why can market orders be risky during major news?

3. Which order is best if you only want to buy at your level or cheaper?

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