Forex Trading Cheat Sheet 2026

The 30 highest-yield Forex Trading facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following is an example of 'scaling out' of a position? → Closing half the position at a target and letting the rest run with a trailing stop
2. Define market order. → An order to buy at the market price
3. What is a 'sell limit' order in Forex? → An order to sell at or above the current market price at a specified level
4. When a trader retains an open position for more than 24 hours, does the futures contract in question incur rollover interest? → False
5. What is the cross rate? → An exchange rate between two currencies that does not involve USD
6. When you place a pending order to purchase something at less than the going rate on the market, you must: → Open a buy limit order
7. What is the typical Silver COMEX lot size? → 5000 Troy Ounce
8. Which of the following technical analysis terms is peculiar? → Gremlin pattern
9. A trader's account drops from $20,000 to $10,000. What percentage gain is required to return to breakeven? → 100%
10. Which of these is not a day trading indicator? → Ichimoku pattern
11. In forex, what does 'higher timeframe confluence' mean in technical analysis? → When signals from larger timeframes align with and reinforce signals on smaller timeframes
12. What does 'drawdown' refer to in Forex trading performance? → The peak-to-trough decline in account equity during a losing period
13. What is the primary indicator? → Price itself
14. What is the 'spread' in Forex trading? → The difference between the bid and ask price
15. Why is risk management considered more important than a trading strategy's win rate alone? → Because a high win rate with poor risk management can still result in overall account loss
16. Which of the following best describes 'supply and demand zones' in forex trading? → Price regions where institutional buying or selling previously caused sharp moves
17. What does the Ichimoku Cloud (Kumo) represent on a forex chart? → A zone of potential support or resistance based on historical price action
18. What is a 'lot' in Forex trading? → A standard unit of trade size
19. What is a 'market order' in Forex trading? → An instruction to execute a trade immediately at the current market price
20. What virtues do successful traders possess? → They stick to a well developed Trading plan
21. In forex, 'execution risk' refers to: → Uncertainty about whether an order will be filled at the desired price and time
22. What typically happens to a currency when its central bank adopts a 'dovish' policy stance? → The currency weakens due to expectations of lower interest rates
23. What does the MACD histogram represent? → The distance between the MACD line and its signal line
24. What does this price pattern's name mean? → Double top
25. Define the forex trading? → All of the above
26. What is a 'buy stop' order used for in Forex? → To buy a currency pair above the current market price once a level is broken
27. What does a rising EUR/USD rate indicate? → EUR is strengthening against USD
28. Which of these indicators best depicts the market's stage? → Moving average convergence and divergence
29. If you believe there are more than one possible answers, select more than one. The EUR/USD pip value is computed in: → Variable Currency
30. Which of the following is considered an exotic currency pair? → USD/TRY