Questions about Forex.

Question 1 

The lot size is 10,000. The leverage is 100:1. EUR/USD is trading at 1.2313/18. If you buy 1 lot of EUR/USD, how much margin will you use in terms of U.S. dollar?
A) $123.13
B) $123.18
C) $100

Question 2

Your account has $500 with 100:1 leverage. What is the maximum amount of position you could open?
A) 5 Micro Lots
B) 5 Mini Lots
C) 5 Lots

D) Don’t know

Question 3

Client X chooses 100:1 leverage. Client Y chooses 200:1 leverage. If they choose the same lot size to trade, who uses less margin?
A) Client X
B) Client Y
C) Client X uses the same margin as client Y

D) Don’t know

Question 4

Major currency pairs do not have USD currency?
A) True

B) False

C) Don’t know

D) All of the Above

Question 5

How many days a week does the Forex market open?
A) 5
B) 4
C) 7

D) Don’t know

Question 6

The lot size is 100,000. Will profit/loss per pip vary if one chooses 100:1 leverage versus 200:1 leverage?

A) Yes
B) No
C) It depends on the currency pair

D) Don’t know

Question 7

There is no activity in the Forex market during the weekend.
A) True

B) False

C) Don’t know

D) All of the Above

Question 8

USD/CHF is trading at 1.4601/06. What is the bid rate?
A) 1.4601
B) 1.4606
C) 1.46035 going short

D) Don’t know

Question 9

The Forex Market is a Centralized Exchange.?
A) True

B) False

C) Don’t know

D) All of the Above

Question 10

What is a Pip?
A) Price Interest Position
B) Proprietary Indicator Package
C) Percentage in Point
D) Producer Interest Point

Question 11

The difference between Bid and Ask price is known as?

A) Spear
B) Spread
C) Commission
D) All of the Above

Question 12

Using 100:1 Leverage if we purchase 10 Standard Lots how large is our position?
A) $1,000
B) $10,000
C) $100,000
D) $1000,000

Question 13

Using 100:1 Leverage and trading EUR/USD , if we purchase 5 mini lots, what is the approximate profit value, if 10 pips are captured?

A) $5
B) $50
C) $500
D) $5000

Question 14

What do you know about Forex?

Forex stands for foreign exchange . It means that in forex one currency can be exchanged from the another currency . It’s a decentralised and over the counter market. Forex market operates 24/7 with the exception on weekends. Forex market has a daily turnover of approx. $4 trillion. . The main purpose of the forex markets is to facilitate international trade and investment. Currencies that have the highest transaction volume include the US Dollar, Euro, Great British Pound, and Japanese Yen.

Question 15

What is Forex Trading?

Forex trading means the currency can be traded in pair for e.g. EUR/USD where, EUR stands for EURO and USD stands for United states Dollar .

In, EUR/USD  euro is the base currency and usd is a quote.

In, forex trading there is bid and ask .bid is a price on which currency can be sold .

Ask is the price in which currency can be purchased.

There are certain analysis that can help to assess the forex market they are Technical and fundamental analysis.

In, Technical analysis chart pattern are taken into consideration like bar chart,

Candle stick chart and line chart .It is believed that if  a pattern is studied decision can be taken on it .

Whereas, in fundamental analysis the economy ,GDP , ppi are some factors that are taken into consideration . It is believed that fundamental analysis is used if a long term investment has to be done .