Brokers, accounts and order types
How brokers work, what spread, leverage and margin mean, the different order types, and how to protect yourself from scams.
40 min 6 lessons
Module progress 0 / 4
By the end of this module you can
- Explain spread, commission, leverage and margin
- Use market, limit and stop orders correctly
- Check whether a broker is regulated and avoid common scams
- Know the rules for online trading in your own country
Lessons in this module
- 1 What a broker does and how it earns money
- 2 Spread, commission and swap
- 3 Leverage and margin: why they magnify losses as well as gains
- 4 Order types: market, limit, stop and stop-loss
- 5 Regulation, legal checks and red flags of scams
- 6 Opening a demo account
This page is a preview of the module. The full lessons are free in our Telegram community, where they are unlocked step by step with practice tasks and Q&A.
What this module covers
- What a broker does and how brokers earn money (spread, commission, swap).
- Leverage and margin explained with simple numbers, and why leverage magnifies losses as much as gains.
- Order types. Market, limit and stop orders, and attaching a stop-loss and take-profit.
- Regulation and scams. How to check a broker’s licence, and red flags such as guaranteed returns, “account managers” who trade for you, and pressure to deposit.
- Legal checks. Rules for online trading differ by country. In some countries, including Bangladesh, sending money abroad to trade forex or CFDs with overseas brokers may be restricted. Check your local laws before opening any live account.
- Opening a demo account to practise safely.
Practice task
Open a demo account and place one market order and one limit order, both with a stop-loss. Close them and look at the trade history.
Module checklist
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