Forex Trading Test 1
What does having a SHORT position mean?
Explanation:
When a trader first sells a security with the purpose of later repurchasing or covering it at a lower price, they are creating a short, or short position. When a trader predicts that the price of an asset will drop soon, she may elect to short that security.
What does the REVERSAL pattern's name mean?
Explanation:
In forex, the Triple Bottom Pattern is a potent bullish reversal pattern that typically develops after a protracted downtrend. Its development denotes a likely bullish trend reversal. Similar to the double bottom, the triple bottom operates.
How much money do you need in your account to establish a stake of $10000 if your broker has a 100x margin ratio?
Correct answer:
$100
What is the MINI LOT size?
Explanation:
A mini lot is a size for currency trading that is 10,000 units
Define PIP.
Explanation:
The abbreviation "Pip" stands for "percentage in point" or "price interest point," which refers to the smallest price change in a currency pair's exchange rate.
What does this price pattern's name mean?
Explanation:
Double Top pattern selling technique. Find the pattern in an upward trend. Do not enter until the price bar has turned bearish. After the creation of the second bottom, place your trade. On the two bottoms, there must be a neckline. Set your stop-loss at or close to the peaks. Take a loss on the trade.
Define LIMIT order.
Explanation:
A limit order is a directive to carry out a transaction at a price that is better than the going rate on the market. Limit orders come in two flavors: entry orders (which start a new position) and closure orders (that terminate an existing position).
Which currency is the base in the currency pair GBP/JYP?
Explanation:
The pound sterling serves as the base currency and the Japanese yen serves as the quote currency in the GBP/JPY exchange rate.
What does the price in the BID mean?
Explanation:
When trading Forex, there are two sides: the buyer and the seller. The bid price is the price the buyer is willing to pay for the item. The bid price, which is used in the Forex trading market, is the most money a buyer will spend to purchase a currency pair.
What is the primary indicator?
Correct answer:
Price itself
The size of a STANDARD LOT is?
Explanation:
In a forex transaction, a standard lot is equal to 100,000 units of the base currency. One of the three widely used lot sizes, along with the mini-lot and micro-lot, is this one.