Forex Trading Test 1

Question 1

What does having a SHORT position mean?

Accepted Answer

You have sold the base currency and bought the counter currency.

Answer

You are expecting the base currency to move lower

Answer

You have made a loss on a position.

Answer

You have bought the base currency and sold the counter currency.

Question 2

What does the REVERSAL pattern's name mean?

Accepted Answer

Tripple bottom

Answer

Triangle

Answer

Delfin

Answer

None of the above

Question 3

How much money do you need in your account to establish a stake of $10000 if your broker has a 100x margin ratio?

Accepted Answer

$100

Answer

$100,000

Answer

$10,000

Answer

$1,000

Question 4

What is the MINI LOT size?

Accepted Answer

10 000 currency units

Answer

100 000 currency units

Answer

1 000 currency units

Answer

Depends on a currency

Question 5

Define PIP.

Accepted Answer

The minimum movement of a currency price

Answer

A one-cent movement in the price of USD

Answer

A movement in the price of 100 points

Answer

A movement in the price that is less than 10 points

Question 6

What does this price pattern's name mean?

Accepted Answer

Double top

Answer

Diamant

Answer

Double bottom

Answer

Triple top

Question 7

Define LIMIT order.

Accepted Answer

An order to buy or sell at a set price and no higher or lower

Answer

An order to limit the price to the market price

Answer

An order to buy a limited number of lots

Answer

An order that needs to be filled today

Question 8

Which currency is the base in the currency pair GBP/JYP?

Accepted Answer

GBP

Answer

JPY

Answer

Neither

Answer

Both

Question 9

What does the price in the BID mean?

Accepted Answer

The price you can sell the base currency

Answer

The price you can buy the base currency

Answer

The price you can sell the counter currency

Answer

The price you can buy the counter currency

Question 10

What is the primary indicator?

Accepted Answer

Price itself

Answer

Momentum

Answer

Bollinger bands

Answer

Stochastic