Forex Test

1. Why does the Forex market exist?

Because countries, businesses, banks, and travelers need to exchange currencies Because options need expiration dates Because stocks need dividends Because crypto needs mining

2. What is the ask price?

The price at which you can sell The trading session The price at which you can buy The interest rate only

3. Why is leverage risky?

It removes margin calls It can amplify both profits and losses It stops price movement It guarantees profits

4. What does EUR/USD show?

How many euros are in one dollar only How many U.S. dollars are needed for one euro The U.S. stock market The price of gold

5. What is risk-to-reward ratio?

A broker password A type of spread A currency exchange rate Comparison of potential loss to potential gain

6. What is leverage in Forex?

Guaranteed income A fixed exchange rate Borrowed trading power that allows control of a larger position A savings account

7. What does going long mean in Forex?

Buying a currency pair expecting it to rise Avoiding all trades Closing the broker account Selling a currency pair expecting it to fall

8. What is the spread in Forex?

The distance between countries The difference between the bid and ask price The difference between stocks and crypto The broker’s office location

9. What is an uptrend?

Price disappearing Price making higher highs and higher lows Price staying flat forever Price making lower lows only

10. In EUR/USD, what is EUR called?

Base currency Pip currency Quote currency Margin currency

11. What is a mini lot?

1,000,000 units of currency 10,000 units of currency 100,000 units of currency 10 units of currency

12. What is a lot size?

The number of currency units controlled in a Forex trade The number of trades allowed per day The broker’s website size The number of indicators on a chart

13. Why are pips important?

They guarantee profits They remove risk They replace stop losses They help measure profit, loss, and price movement

14. In EUR/USD, what is USD called?

Spread currency Lot currency Base currency Quote currency

15. What does overleveraging mean?

Avoiding all risk Trading without spreads Using no margin Using too much leverage for account size

16. What is an exotic currency pair?

A pair with two stocks A pair that cannot be traded A pair with Bitcoin only A major currency paired with a smaller or emerging-market currency

17. Which factor often strongly affects currency strength?

Interest rates Company stock splits Option expiration NFT artwork

18. What is the bid price?

The price at which you can sell The broker password The price at which you can buy The dividend amount

19. What is resistance?

A price area where selling pressure may appear A currency symbol A wallet backup A lot size

20. What is a micro lot?

1 unit only 10,000 units of currency 100,000 units of currency 1,000 units of currency

21. What is the New York session commonly known for?

High activity, especially with USD pairs Only weekend trading No movement Only Asian currencies

22. Why is position sizing important?

It changes the currency pair It controls how much money is at risk on a trade It removes spreads It guarantees winning trades

23. What is a margin call?

A guaranteed profit alert A dividend payment A warning or action when account equity falls too low A phone call from a bank for savings

24. What does inflation measure?

The value of one pip only The rate at which prices rise over time The broker’s commission The number of trades placed

25. Why do central bank decisions matter?

They create crypto wallets They can affect interest rates and currency value They stop all trading They control stock dividends