Forex Test

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

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

2. What is a pip?

A company dividend A crypto token A stock certificate A small unit of price movement in Forex

3. What does Forex stand for?

Foreign Export Financial Exchange Office Fixed Exchange Rate Foreign Exchange

4. What is the spread in Forex?

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

5. What is a currency pair?

Two currencies traded against each other Two crypto wallets Two futures contracts Two stocks in one order

6. 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

7. What is a micro lot?

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

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

Base currency Margin currency Pip currency Quote currency

9. What is an exotic currency pair?

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

10. Why does the Forex market exist?

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

11. 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

12. What is liquidity in Forex?

How much water a country has How easily a currency pair can be bought or sold How many indicators are used How many brokers exist

13. What is support?

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

14. Why is leverage risky?

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

15. Why do traders prefer lower spreads?

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

16. What is a minor currency pair?

A crypto pair A stock pair A pair that includes only USD A pair of major currencies that does not include USD

17. Why is position sizing important?

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

18. What is slippage in Forex?

When execution price differs from expected price A type of lot size A currency pair A guaranteed profit

19. What is fundamental analysis in Forex?

Studying economic factors that affect currency values Counting social media followers Only drawing lines on charts Checking crypto wallets

20. Which session overlap is often the most active?

London and New York overlap Market close overlap Asian and weekend overlap No overlap

21. What is leverage in Forex?

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

22. Why do employment reports affect Forex?

They create pips They remove spreads They decide stock dividends They reveal labor market strength and can influence central bank policy

23. Why are major pairs popular?

They are always risk-free They only trade once a week They never lose money They usually have high liquidity and lower spreads

24. What is an uptrend?

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

25. What is a range-bound market?

A market without buyers Price moving in one direction forever Price moving between support and resistance A market that is closed