Forex Test

1. What is a downtrend?

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

2. 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

3. What is a take profit order?

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

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

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

5. What is a range-bound market?

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

6. What is a margin call?

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

7. Why are pips important?

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

8. What is technical analysis in Forex?

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

9. What is liquidity in Forex?

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

10. What is a micro lot?

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

11. Which Forex pairs usually have the highest liquidity?

Pairs with no volume Major pairs Unknown pairs Exotic pairs only

12. What is slippage in Forex?

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

13. Who participates in the Forex market?

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

14. What is the London session commonly known for?

Market closure High liquidity and strong movement No trading volume Only crypto activity

15. Why is position sizing important?

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

16. What is a minor currency pair?

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

17. What are major currency pairs?

Pairs that include crypto Pairs with only small countries Pairs that never move Pairs that include the U.S. dollar and highly traded currencies

18. What is a stop loss?

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

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

Margin currency Base currency Quote currency Pip currency

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

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

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

Lot currency Base currency Spread currency Quote currency

22. What is the spread in Forex?

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

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

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

24. Why do news events create volatility in Forex?

They make prices fixed They remove spreads They stop banks from trading They change expectations about economies and interest rates

25. 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