Forex Trading Currency Pairs

Question 1

What is a major currency pair in forex trading?

Accepted Answer

A pair involving USD and one of the other most traded currencies (EUR, GBP, JPY, CHF, CAD, AUD, NZD)

Answer

Any pair with USD

Answer

A pair with high volatility

Answer

A pair with the highest value

Question 2

What does the 'bid' price represent in a forex quote?

Accepted Answer

The price at which the market will buy the base currency (the price you can sell at)

Answer

The price you can buy the base currency

Answer

The average market price

Answer

The highest price of the day

Question 3

What is a pip in forex trading?

Accepted Answer

The smallest standard price increment in a currency pair, typically the fourth decimal place

Answer

A seed from a fruit

Answer

A trading strategy

Answer

A type of order

Question 4

What is the spread in forex?

Accepted Answer

The difference between the bid and ask price, representing the cost of the trade

Answer

The range of the day's prices

Answer

The difference between currencies

Answer

A trading pattern

Question 5

What does leverage of 100:1 mean in forex?

Accepted Answer

You can control $100 worth of currency for every $1 of your own capital

Answer

You can only trade $100

Answer

Your profit is multiplied by 100

Answer

You need $100 minimum deposit

Question 6

What is a cross currency pair?

Accepted Answer

A currency pair that does not include USD, such as EUR/GBP or AUD/JPY

Answer

A pair that crosses the USD

Answer

An illegal currency pair

Answer

A pair with negative correlation