Unit 2 · Level 1 · How Exchanges Work
Boss: Exchanges review
Everything from this unit: exchanges, order books, order types, and the silent costs. Beat this and you're ready for the simulator, where you'll place all of these orders with real market prices.
Free to play. No ads, no token, no account needed to start.
What you get asked
A complete, disciplined trade: put it in order
That sequence is the skeleton of every good trade you'll ever place.
Which order type guarantees a fill but NOT the price?
Market = certainty of fill, uncertainty of price. Limit = the reverse.
Best bid $99,900, best ask $100,000: the spread is ___.
Ask minus bid. You'll see this pair of numbers on every trading screen for the rest of your life.
You bought a coin at $10 with a stop at $9.50. Terrible news breaks overnight and it opens at $8. Where did your stop likely fill?
Gaps jump over stops; your stop became a market order at the next available price. Stops manage risk, but position sizing (League 2) is what truly caps it.
Final boss question. Why do frequent small trades often lose money even when most of them 'win'?
BOSS DEFEATED! 👑 You understand market mechanics better than most people with live accounts. Next up is League 2: charts, trends, and real risk management. Formi is impressed. 🐜
The rest of this unit
Order books, order types, stop-losses, and the silent costs of every trade.