Forex Test

1. Why do traders prefer lower spreads?

Lower spreads stop volatility Lower spreads guarantee profit Lower spreads remove risk Lower spreads reduce trading costs

2. What is a mini lot?

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

3. What does EUR/USD show?

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

4. Why do central bank decisions matter?

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

5. What is a standard lot?

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

6. What is a stop loss?

A broker fee A type of currency A guaranteed profit order An order designed to limit losses

7. What is resistance?

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

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

Quote currency Lot currency Spread currency Base currency

9. What does overleveraging mean?

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

10. What is the bid price?

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

11. What is a downtrend?

Price becoming risk-free Price staying at one level Price making higher highs only Price making lower highs and lower lows

12. What is a take profit order?

An order designed to close a trade at a target profit A tax form A broker deposit An order that increases losses

13. Why are pips important?

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

14. What is traded in the Forex market?

Company shares Crypto wallets Real estate contracts Currencies

15. What is the Asian trading session commonly known for?

Only stock trading No currency movement Always the highest volatility Often lower volatility compared to London and New York

16. Why is position sizing important?

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

17. What does GDP measure?

Economic output of a country The spread size A broker’s profit A trader’s account balance

18. What is support?

The highest broker fee A price area where buying interest may appear A trading password A tax form

19. Why is Forex considered a 24-hour market?

Because global sessions open across different time zones Because brokers ignore weekends Because only robots trade Because it never closes at all

20. Who participates in the Forex market?

Banks, institutions, governments, businesses, and retail traders Only stock companies Only crypto exchanges Only retail traders

21. What is a lot size?

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

22. What is the spread in Forex?

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

23. What is technical analysis in Forex?

Studying company earnings only Using passwords Studying price charts and patterns Reading bank statements only

24. What is risk-to-reward ratio?

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

25. Why is leverage risky?

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