Forex Test

1. Which of these is a major currency pair?

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

2. What is a lot size?

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

3. What does overleveraging mean?

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

4. What does going long mean in Forex?

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

5. Why is leverage risky?

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

6. Why does the Forex market exist?

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

7. What is risk-to-reward ratio?

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

8. What is a range-bound market?

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

9. 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

10. What is a downtrend?

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

11. What is liquidity in Forex?

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

12. What is a margin call?

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

13. What is an exotic currency pair?

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

14. Why do traders prefer lower spreads?

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

15. What is the bid price?

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

16. What is resistance?

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

17. What is the spread in Forex?

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

18. What is an uptrend?

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

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

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

20. What is a pip?

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

21. Why is position sizing important?

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

22. Which session overlap is often the most active?

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

23. What is technical analysis in Forex?

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

24. Which factor often strongly affects currency strength?

Company stock splits Option expiration NFT artwork Interest rates

25. Why do employment reports affect Forex?

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