Orders, Execution & Leverage

Understanding a market is only one part of trading. Traders also need to understand how instructions are sent to the market, how those instructions are executed and how leverage affects their exposure.

When you press Buy or Sell on a trading platform, you are sending an order. Different order types allow traders to control when and under what conditions they want to enter or exit a position.

Execution is equally important. Market prices can change quickly, so the price visible when an order is submitted may not always be the exact price at which it is filled.

Leverage adds another important layer. It allows traders to control a larger market position using a smaller amount of capital, but it also magnifies both potential profits and potential losses.

In this FxGrow course, you'll learn:

• What trading orders are

• How market orders work

• How limit orders work

• How stop orders work

• How stop-loss and take-profit orders work

• How orders are executed

• What slippage, gaps and partial fills mean

• What leverage is

• How margin works

• What happens when available margin becomes too low