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01 · Level 1What you press, what it costs, and where your money actually sits. Fifteen lessons, each one answering a question a first-time account holder asks.

Basics: how a trade and an account work

  1. 1.1

    What happens when you press Buy

    An order leaves your platform, gets filled at a price, becomes an open position, and ends when you close it. Four steps, and every cost attaches to one of them.

  2. 1.2

    Pairs and quotes: what 1.0850 means

    A quote is the price of the first currency in the second. The number you see moves in the last decimal place, and that place has a money value.

  3. 1.3

    What a pip is worth in money

    A pip is the smallest standard price step. What it is worth depends on lot size and the pair, so the same twenty-pip move pays differently on different trades.

  4. 1.4

    Lots: standard, mini and micro

    A lot is how much of the instrument one trade controls. Standard is 100,000 units, mini is a tenth of that, micro a hundredth.

  5. 1.5

    The three costs: spread, commission, swap

    You pay the spread on entry, commission on some account types, and swap for every night a position stays open. All three are known before you trade.

  6. 1.6

    Overnight swap and swap-free accounts

    Swap is the daily cost of holding a leveraged position. A swap-free account removes it and usually replaces it with another charge.

  7. 1.7

    Leverage and margin: how much of the trade is yours

    Leverage sets how large a position your deposit can hold. Margin is the part of your money locked against it while the trade is open.

  8. 1.8

    Order types: market, limit, stop

    A market order takes the current price. A limit waits for a better one. A stop triggers once price reaches a worse one.

  9. 1.9

    Stop loss and take profit

    Two instructions you attach to a position: one closes it at a loss you chose in advance, the other at a profit you chose in advance.

  10. 1.10

    MT4, MT5 and cTrader: which to pick

    The three platforms differ in instruments, order handling and how they report costs. The choice is reversible; the account type behind it is less so.

  11. 1.11

    Trading from a phone

    The phone app does everything the desktop one does except show you enough chart. What that changes about your decisions is the lesson.

  12. 1.12

    Demo accounts: what they teach and where they lie

    A demo teaches the platform and the arithmetic honestly. It cannot teach fills in a fast market, and it cannot teach how losing real money feels.

  13. 1.13

    Account types: standard, raw spread, cent

    The same trade costs different amounts on different account types. Raw spread accounts move the cost into commission rather than removing it.

  14. 1.14

    Opening an account and passing verification

    What documents a regulated broker has to ask for, why it has to ask, and the checks that hold an application up.

  15. 1.15

    Deposits and withdrawals with local methods

    Which local payment methods reach a broker, how long each leg takes, and why a withdrawal usually has to go back the way the deposit came.

The vocabulary this level builds

Every lesson in this level starts with a word rather than a chart. A reader who has never opened a platform meets the term first, sees how it is written on the screen, and only then meets the arithmetic behind it. That order matters. The names are the part that looks foreign, and once they are familiar the numbers stop being intimidating.

The level begins with the mechanics of a single press. A buy order is not one action but a short chain of them, and the lessons take that chain apart so the reader can see where the price comes from, who is on the other side, and what the platform records. From there the vocabulary widens to quotes, pips, lots and the three costs that sit inside every trade. Each term is defined before it is used in a calculation.

By the end of the level the reader can read a quote aloud, say what one pip is worth in Australian dollars on a given position size, and explain where the spread, the commission and the swap each come from. They can also describe what leverage does to the money they put up and what margin is actually held. None of that requires a funded account.

How the ideas stack, and where they catch people

The level is built in three passes. The first pass is the trade itself: what a buy is, how a pair is quoted, what a pip and a lot are. The second pass is the cost and the control: spread, commission, swap, leverage, margin, order types, stops. The third pass is the practical setup: which platform, trading from a phone, what a demo does, which account type, how verification works, and how money moves in and out.

The most common stumble is the pip. People accept the definition and then cannot use it, because a pip only becomes money when it is attached to a lot size and a currency. The lessons keep those three together on purpose. A second stumble is leverage, which is often read as extra money rather than as a ratio that scales both the position and the loss. The margin lesson exists to separate the two.

The third stumble is the demo. A demo shows the mechanics honestly and the fills generously, because there is no real counterparty and no slippage worth the name. Readers who treat demo results as a forecast of live results are reading the wrong thing from it. The level says plainly what a demo teaches and where it stops being useful.

Costs are the quiet one. Three separate charges can apply to a single position held overnight, and each is quoted differently. The lessons show them one at a time so that the total is not a surprise later.

What the level asks of your time

Fifteen lessons is roughly six to eight hours of reading at a normal pace, spread over a week or two. That estimate assumes the reader pauses to open a demo and look at the screen while reading, which is the point of the exercise. Reading alone, without ever seeing the words on a platform, takes less time and leaves less behind.

The sequence is deliberate and worth keeping. Quotes before pips, pips before lots, lots before costs, costs before leverage. Skipping ahead to leverage or order types usually means returning to the earlier lessons anyway, because the later ones assume the vocabulary is already in place.

No prior knowledge is assumed. No money is required at any point in this level. The examples use AUD/USD around 0.6640 and Australian dollars, and the regulator named throughout is ASIC. Where a figure differs between brokers, the lesson says so rather than giving one number as if it were universal.

At the end, the reader can open a demo, place a market order, read the resulting position, and explain every number on that screen in their own words. That is the whole aim of the level. It is a foundation for reading a platform, not a method for making decisions about direction.

Doing it once, step by step

Work through the following once, in order, before starting the lessons. Each step takes minutes and leaves you with something the next lesson will use.

  1. 01

    Write the terms on one page

    Take a single sheet and list the words you meet: pip, lot, spread, commission, swap, leverage, margin. Leave space beside each one. Fill the space as you go through the level, in your own words rather than the lesson's. A page you wrote yourself is faster to revise than fifteen lessons.

  2. 02

    Open a demo and find the quote

    Open a demo account with any broker you are considering, and locate AUD/USD on the watchlist. Note the two prices shown and which is which. This is the first thing the lessons will ask you to read, and having it on screen makes the reading concrete.

  3. 03

    Place one market order and read the ticket

    Buy the smallest size the platform allows, then open the position window. Find the entry price, the current price, the size, and the profit or loss figure. Change nothing yet. The goal is to recognise each field before the lessons explain it.

  4. 04

    Attach a stop and a target

    On that same position, set a stop loss and a take profit some distance away. Watch how the platform displays them and what happens to the margin figure. Close the position when you have seen both. This previews the order-type and margin lessons without requiring you to understand them yet.

  5. 05

    Find the cost lines

    Look for the spread on the instrument, any commission charged on the trade, and the swap rate for holding overnight. Write down where each one appears in the platform. If a figure is not shown, note that too, because it varies between brokers and account types.

  6. 06

    Test one deposit route

    Check which funding methods the broker offers and whether PayID, BPAY or a card is among them. Do not deposit yet. Read the withdrawal conditions as well, since the two are usually described in different places. Knowing the route in and out before you commit money is part of the level's last lesson.

Questions that come up next

Do I need to fund an account before I start this level?

No. Every lesson here can be followed on paper or on a demo. The arithmetic of pips, lots and margin works the same whether the money is real or simulated. Funding an account is a separate decision, and nothing in this level requires it. What the level does require is that you can read a quote and follow a calculation.

How long should the fifteen lessons take?

Most readers get through the whole level in about two to three weeks at a steady pace, one lesson at a sitting. The early lessons on quotes, pips and lots are quick; the ones on margin, order types and account verification take longer because they involve more moving parts. Rushing the pip and lot lessons is the usual reason people stall later. There is no schedule to keep to, and the lessons stay where they are.

Is ASIC the only thing I should check about a broker?

ASIC is the Australian regulator, and an Australian-facing broker will normally hold a licence with it. That licence is one thing to confirm, not the whole picture. Costs, the platform offered, the account types and how deposits and withdrawals are handled all vary between brokers, and those differences matter as much as the licence. This course does not recommend a broker, and the figures in the examples are there to show the arithmetic, not to describe any particular firm.

Can I deposit with PayID or BPAY?

Many Australian brokers accept PayID, BPAY and cards, and those methods are common for deposits and withdrawals. Which ones a given broker supports, how long a transfer takes and whether a fee applies all vary between brokers. Check the broker's own funding page rather than assuming. The lesson on deposits and withdrawals covers how the process works in general.

Why does the course use AUD/USD at around 0.6640 in the examples?

It is a pair an Australian reader will recognise, and a price near 0.6640 keeps the pip arithmetic simple to follow. The rate moves, so treat the figure as a worked example rather than a current quote. The method for turning a pip into dollars is the same at any price. Once you can do it for one pair, you can do it for another.

What should I do if the pip calculation still does not click?

Go back to the lesson on pip value and keep the lot size and the currency in the same line of working. A pip is only a number until it is attached to a position size and a currency to convert into. Write the three parts out separately before multiplying them. Most people who find it hard have dropped one of the three.

The words used on this page

Pip
The smallest standard step in a quoted price, usually the fourth decimal place for a pair like AUD/USD. It becomes money only when you attach it to a position size and convert into your own currency. The lesson keeps those three parts together.
Lot
The size unit of a trade. A standard lot, a mini lot and a micro lot differ by a fixed factor, and that factor changes what one pip is worth in dollars. Choosing a lot size is choosing how much each pip move costs or pays.
Leverage
A ratio that scales the size of a position relative to the money you put up. It scales the loss as well as the position, which is the part that catches people. It is not extra money in the account.
Margin
The portion of your account balance held aside while a leveraged position is open. It is not a fee and it is not spent. It is money you cannot use for other positions until the trade is closed.
Swap
A charge or credit applied when a position is held overnight, reflecting the difference between the two currencies in the pair. It varies between brokers and can be positive or negative. A swap-free account removes it under conditions the broker sets.
Demo account
A simulated account that shows the mechanics of placing, modifying and closing trades without real money. It teaches the platform honestly and the fills generously, because there is no real counterparty. Treat its results as practice, not as a forecast.

What to take away

  • At the end of this level you can read a quote aloud, say what one pip is worth in Australian dollars for a given lot size, and name the three costs inside a trade.
  • You can explain what leverage scales and what margin holds, and you know the difference between the two.
  • You can describe how a demo teaches the platform and where it stops being a guide to live results.
  • The ideas build in three passes: the trade, then the costs and controls, then the practical setup of platform, account and money movement.

Printable summary

Every lesson in this level on a few pages, with the worked figures. For reading away from the screen.

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Start at the first lesson if this is new. If you already have an account, Level 3 is the one that keeps it.Kateyour course guide