Trading Mechanics
How orders actually work, and when the market is worth watching.
Order Types: Market, Limit & Stop
A market order executes immediately at the best available current price — simple, but you accept whatever price is live at that instant.
A limit order only fills at your chosen price or better — a buy limit sits below the current price (you want a cheaper entry), a sell limit sits above it (you want to sell higher). It won't fill at a worse price than you set, but it might not fill at all if the market never reaches it.
A stop order triggers a market order once price reaches a chosen level — a buy stop sits above the current price (used to catch upside breakouts), a sell stop sits below it (used to catch downside breakouts, or to limit losses on a long position).
A stop-loss and take-profit are the same stop/limit mechanics applied to an already-open position: a stop-loss automatically closes a losing trade at a predefined level, and a take-profit automatically closes a winning trade once your target is reached.
A market order trades right now at any price; a limit order trades later, but only at your price.
Pending orders are defined by where they sit relative to the current price — buy orders above trigger on strength, sell orders above lock in a level you want to sell at.
Trading Sessions & Market Hours
Forex trades 24 hours a day on weekdays because the market rotates through four major regional sessions: Sydney, Tokyo, London, and New York. Each opens as the previous one is winding down, so there's always at least one major center active.
Liquidity and volatility aren't constant throughout the day — they rise and fall with which sessions are open, and especially when two major sessions overlap.
- London–New York overlap (roughly 13:00–17:00 UTC) is typically the busiest window — both major Western financial centers are trading at once, so spreads tend to be tighter and moves more decisive.
- The Tokyo session often sees comparatively quieter, more range-bound conditions for major pairs, especially before London opens.
- Session times shift slightly with daylight saving changes in each region, so exact overlap hours drift a little through the year.
Liquidity isn't constant all day — it peaks when two major financial centers are trading at once.
Four regional sessions hand off across the 24-hour day; the London–New York overlap is when the most participants are trading simultaneously.
Check yourself: Trading Mechanics
Which order type only fills at your chosen price or better?