Forex Test

1. What is a standard lot?

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

2. Why is position sizing important?

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

3. What is a pip?

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

4. What are major currency pairs?

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

5. What is a margin call?

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

6. Which of these is a major currency pair?

EUR/USD AAPL/MSFT BTC/ETH Gold/Oil

7. What is a downtrend?

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

8. What is traded in the Forex market?

Currencies Company shares Real estate contracts Crypto wallets

9. What is a minor currency pair?

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

10. What does overleveraging mean?

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

11. What is the London session commonly known for?

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

12. What is the bid price?

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

13. Why do news events create volatility in Forex?

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

14. What does going short mean in Forex?

Buying a currency pair expecting it to rise Holding cash only Selling a currency pair expecting it to fall Opening a savings account

15. What is a take profit order?

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

16. What is leverage in Forex?

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

17. Why do employment reports affect Forex?

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

18. Why do traders prefer lower spreads?

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

19. What is support?

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

20. Why do central bank decisions matter?

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

21. What is the spread in Forex?

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

22. What is risk-to-reward ratio?

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

23. What is an exotic currency pair?

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

24. What is slippage in Forex?

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

25. What does GDP measure?

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