← Training● Basics · Lesson 3 of 7

Brokers and order types

5 min read · Builds on Lesson 2
Lesson 3 of 7

You now know what a price is. Next: how you actually place a trade — through a broker, using an order. Get the four order types straight and you will never fumble an entry or, worse, forget to protect a position.

What a broker actually does

A broker is your doorway to the market. They give you a platform, a live price feed, and the leverage to take a position bigger than your cash (more on that next lesson). In return they make money two ways: the spread (that bid/ask gap from Lesson 2) and sometimes a small commission per trade. WXYwaves analysis is built around MT5, the platform RiskLogged plugs into.

Picking one without getting burned

Three things matter more than flashy bonuses: regulation (a real licence in a serious jurisdiction), tight, honest spreads, and clean execution (your orders fill at the price you see). Skip the rest of the marketing.

My brokerWant a shortcut? The broker I personally trade on \u2014 MT5, with my honest take and the risks \u2014 is right here.

The four orders you actually need

Every entry and exit is one of these. The first three get you in; the fourth gets you out safely.

Market

Buy or sell right now at the current price. Instant, simple — you pay the spread to get in.

Limit

Only fill at a better price than now. “Buy gold if it drops to $2,000.” Patient entries.

Stop

Fires once price passes a level. Used to enter on a breakout — or to cap a loss.

The two exits that save accounts

When you enter, you attach two orders straight away: a stop-loss (closes the trade if price moves against you, capping the damage) and a take-profit (closes it when your target is hit). Decide both before you are in — exactly the discipline from Lesson 1. The stop-loss is the single most important order you will ever place.

ExampleYou buy gold at $2,000. You set a stop-loss at $1,980 (you will risk $20) and a take-profit at $2,060 (you aim for $60). Whatever happens, the trade closes itself at one of those — no panic, no babysitting.
Key takeaway

A broker is your access to the market and earns from the spread. Four orders cover everything: market (now), limit (better price), stop (on a breakout), and the stop-loss/take-profit pair that decides your exits before you are even in.

Quick check · 1 of 2

Gold is $2,030. You only want to buy if it dips to $2,000. Which order?

Right. A limit order waits for a better price than now — buy only if gold falls to your $2,000.Not quite. A limit order is the one that waits for a better price — it buys only if gold drops to your level.
Quick check · 2 of 2

Which order automatically closes a losing trade to cap the damage?

Exactly. The stop-loss closes you out if price goes the wrong way — the most important order you place.Not quite. The stop-loss is the one that caps a loss automatically. Take-profit does the opposite — it banks a win.
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Lesson 4 →Leverage & margin

Educational content only — nothing here is financial advice. Trading carries risk; never risk money you cannot afford to lose.