Forex Trading Test 2

Question 1

When you go long, what does that mean?

Accepted Answer

You have bought the base currency and expect it to move higher

Answer

You have made a profit on your open position

Answer

You have closed all of your position

Answer

You have bought exceeding your margin

Question 2

The variable currency in the USD/JPY currency pair is the:

Accepted Answer

JPY

Answer

USD

Question 3

When you start a trade, you are?

Accepted Answer

Buying or selling the base currency and profiting or losing on the variable currency

Answer

Selling the variable currency and losing on the base currency

Answer

Purchasing or selling the variable currency and making a profit or loss on it

Answer

Buying the base currency and profiting on the variable currency

Question 4

Define market order.

Accepted Answer

An order to buy at the market price

Answer

An order to buy and mark the orders

Answer

An order to limit the order to certain markets

Answer

An order that needs to be filled today

Question 5

Your stop loss when starting a buy trade should be:

Accepted Answer

Below the entry price

Answer

Below and above the entry price

Answer

Above the entry price

Answer

On the entry price

Question 6

The variable currency in the EUR/USD currency pair is the:

Accepted Answer

USD

Answer

EUR

Question 7

In order to determine the pip on a currency pair you must:

Accepted Answer

Know the trade volume and the currency pair's number of digits

Answer

Know the currency pair's interest rate

Answer

Know the rate of the currency pair

Answer

Know weather you will open a buy or a sell position

Question 8

Your take profit should be the following when you establish a sell position:

Accepted Answer

Below the entry price

Answer

On the entry price

Answer

Above the entry price

Answer

Below the selling price

Question 9

When you start a sell position, your objective is for the market to:

Accepted Answer

Go Down

Answer

Go up

Answer

Stay at the entry price

Answer

Fluctuate

Question 10

If your leverage is 1:200, you need a margin of: for a trade of 1 lot on the EUR/USD.

Accepted Answer

500 EUR

Answer

5,000 EUR

Answer

830 USD

Answer

500 USD