Understanding these three things is the key to risk management.

Why is XAU/USD (Gold) ~4000 while EUR/USD is ~1.15?

They are prices for completely different things!

• EUR/USD = 1.15702 means 1 Euro is worth $1.15702 US Dollars.
• XAU/USD = 4007.55 means 1 Troy Ounce of Gold is worth $4,007.55 US Dollars.

Pips vs. Pipettes

A **Pip (Percentage in Point)** is the standard unit of price change. A **Pipette** is just 1/10th of a pip, used by brokers for more precision. Your Stop Loss is always measured in Pips.

• Most Forex (EUR/USD): A pip is the 4th decimal place (0.0001).
• JPY Pairs (USD/JPY): A pip is the 2nd decimal place (0.01).
• Metals (XAU/USD): A pip is also the 2nd decimal place (0.01).

Forex vs. Metal Lot Sizes

The "Pip Value" (how much money you make or lose per pip) depends on the **Lot Size** (how much you're trading).

• Forex (e.g., EUR/USD):
  1 Standard Lot = 100,000 units
  Pip Value = (0.0001 * 100,000) = **$10.00 per pip**.
• Metals (e.g., XAU/USD):
  1 Standard Lot = 100 units (100 oz)
  Pip Value = (0.01 * 100) = **$1.00 per pip**.

This is why you must trade a 10x larger position on Gold to risk the same amount as on EUR/USD!

A. Instant Order

1. Market Execution: A simple "Buy" or "Sell" at the current market price. You use this when you want to enter a trade *right now*.

B. Pending Orders (For a Better Price)

2. Buy Limit: An order to **Buy** *below* the current price. You use this when you think the price will drop to a support level and then bounce up.

3. Sell Limit: An order to **Sell** *above* the current price. You use this when you think the price will rise to a resistance level and then fall.

C. Pending Orders (For a Breakout)

4. Buy Stop: An order to **Buy** *above* the current price. You use this when you think if the price breaks *above* resistance, it will keep going up.

5. Sell Stop: An order to **Sell** *below* the current price. You use this when you think if the price breaks *below* support, it will keep falling.

D. Advanced Pending Orders

6. Buy Stop Limit: A two-step order. (1) When the price rises to your "Stop Limit Price", it (2) places a new "Buy Limit" order at your "Price". This protects you from getting a bad price (slippage) in a fast-moving breakout.

7. Sell Stop Limit: The opposite. (1) When the price falls to your "Stop Limit Price", it (2) places a new "Sell Limit" order.