Forex Trading Test 2
When you go long, what does that mean?
Explanation:
The reverse of going short, which is selling the base currency when market participants anticipate a decline in its value, is going long. Going long means making money when the value of the currency pair rises. Conversely, when you go short, you profit from a decline in value.
The variable currency in the USD/JPY currency pair is the:
Correct answer: br JPY
When you start a trade, you are?
Correct answer:
Buying or selling the base currency and profiting or losing on the variable currency
Define market order.
Explanation:
The market order is most likely the simplest and frequently the first type of FX order that traders encounter. Market orders are traded at the market, just as their name suggests. This implies that if you wish to enter the forex market right away, you can place a market order and do so at the current price.
Your stop loss when starting a buy trade should be:
Correct answer:
Below the entry price
The variable currency in the EUR/USD currency pair is the:
Correct answer:
USD
In order to determine the pip on a currency pair you must:
Correct answer:
Know the trade volume and the currency pair's number of digits
Your take profit should be the following when you establish a sell position:
Correct answer:
Below the entry price
When you start a sell position, your objective is for the market to:
Correct answer:
Go Down
If your leverage is 1:200, you need a margin of: for a trade of 1 lot on the EUR/USD.
Correct answer:
500 EUR
If you believe there are more than one possible answers, select more than one. The EUR/USD pip value is computed in:
Please select 2 correct answers
Correct answer:
Variable Currency
USD
