Trading Jobs Forex Trader Training 3

Question 1

What is a 'pip value' used to calculate?

Accepted Answer

The monetary gain or loss per pip move

Answer

Pip value converts a price movement in pips into the actual profit or loss in account currency.

Question 2

Which order type executes immediately at the current market price?

Accepted Answer

Market order

Answer

A market order fills right away at the best available current price.

Question 3

What does a positive 'swap' or rollover indicate?

Accepted Answer

You earn interest for holding the position overnight

Answer

A positive swap credits interest when the held currency has a higher rate than the borrowed one.

Question 4

Risk management commonly limits risk per trade to about what?

Accepted Answer

1–2% of account equity

Answer

Professional traders typically risk only 1–2% of equity per trade to survive losing streaks.

Question 5

A 'lot' of 100,000 units of the base currency is called what?

Accepted Answer

Standard lot

Answer

A standard lot equals 100,000 units; mini is 10,000 and micro is 1,000.

Trading Jobs Practice Test