Learning path

Trading foundations

Written by WiT Markets EditorialReview Editorially reviewedLast reviewed

Trading foundations organises guides already on this site into one sequence. The level is Beginner. You can open any step. The prerequisite is a recommendation, not a lock. Completing the sequence is not a certificate and does not mean a method has an edge.

Beginner · 10 steps · prerequisite is a recommendation

What you will learn

  • Describe a trade as a position with an entry, an exit and a cost.
  • Separate an exchange-listed instrument from a contract with a provider.
  • Name a market, limit and stop instruction and the fill each can miss.
  • Read a hypothetical trade from instrument to planned cash risk.

Before you start

None. Start here if the words on a ticket are still unfamiliar. Any step can be opened. A later step is easier if the earlier mechanism is already clear.

Broker, software, venue

  • The broker is the firm named on the account contract. Eligibility, custody and complaint routes depend on that legal entity and your country.
  • The trading screen is software. It can be separate from the firm. The directory is at trading software.
  • The venue is where an order is matched, when the product is exchange-listed. A contract with the firm is not that venue.
  • A market-data supplier and a clearing house are further roles. This site does not stream prices and does not rank firms.

Worked path

Optional progress

Progress loads in the browser. Clearing stored site data removes the marks. They are not synced, and a full set of marks is not a certificate.

  1. Trading basicsHow a share trade is planned, costed and reviewed.
  2. How financial markets workThe instrument map before a provider is chosen.
  3. Stocks and sharesOwnership, a quote, a dividend and the costs around a listed share.
  4. A listed fund and a contractAn exchange-traded fund is not the same claim as a contract with a provider.
  5. Prices, quotes and spreadsThe bid, the ask and the cost of crossing.
  6. Market, limit and stop ordersAn instruction is not a guaranteed fill.
  7. Brokers and trading accountsThe firm, the account and the access behind the platform.
  8. Commissions, fees and slippageCosts that do not sit on one line.
  9. An introduction to trading riskThe loss you planned, and the loss you can still take.
  10. Plan a hypothetical tradeThe exercise on this page. Nothing is sent to a broker.

Learn, then calculate, then review

  1. Learn. Read the step. The mechanism is in that guide.
  2. Calculate. Open the tool and type your own inputs. This page does not send an order.
  3. Review. If you keep a journal, put the hypothetical plan next to the result. An account is not required.

Hypothetical position size

Account 10,000. Risk budget 1 percent. Long entry 100, stop 95, multiplier 1, no fee and no slippage in this example. The quantity increment is 1. Nothing here is a live price.

Knowledge check

A correct answer refers to the lesson and the worked example. It is not a certificate and it does not establish that you can trade.

A market order tells the venue to do what?
In the hypothetical on this page, the account is 10,000, the risk budget is 1 percent, and the stop is 5 points away with a multiplier of 1. What quantity does that budget allow before costs?
Finishing this pathway means which of the following?

Key takeaway

A trade is an instrument, an order, a cost and a planned loss. The planned loss is not a cap if the market gaps or the order type allows a worse price.

Related tools

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Research

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Sources and review

Written by: WiT Markets Editorial. Writes and structures WiT Markets pages. Separates a sourced fact from a cell that is Not confirmed.

Review: Editorially reviewed. This is not a qualified specialist review and it is not a legal sign-off.

Last reviewed: . Next review due . The date is an editorial pass. It is not a live check of every third-party fee.

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Trading foundations pathway | WiT Markets