Forex Trading - Summary and Quiz

1. Currencies are traded in currency _________.

* groupings

* sets

* pairs

* derivatives

2. In the EUR/USD currency pair, EUR is the ________ currency and USD is the_________or counter currency. *long, short

*objective, subjective

*first, second

*base, quote

3. The difference between the bid price and the ask price is known as the _________.

* vig

* exchange rate

* interest rate

* spread

4. A _________ is equal to 0.01 for exchange rates expressed to two decimal places, or 0.0001 for exchange rates expressed to four decimal places.

* trade

* pip

* selling price

* spread

5. Some brokers offer an additional digit of precision for certain exchange rates. This extra digit is commonly referred to as a _________.

* multiplier

* fractional pip

* realized gain

* profit

6. Buy = _________ and Sell = _________.

* short, long

* cost, revenue

* long, short

* spread, exchange

7. To close a position, you need to buy or sell _________ amount of the open order, thereby reducing the open position to zero.

* a greater

* an equal

* a partial

* a different

8. _________ gains / losses are the profits or losses that would result if an open position were closed at the current exchange rate.

* Future

* Potential

* Unrealized

* Present value

9. Once the position is closed, gains and losses are said to be _________.

*confirmed

* theoretical

* banked

* realized

10. A _________ is used by most forex brokers to close out an open position at the end of the business day, and reopen an identical position as of the next day.

* carry trade

* rollover swap

* margin calculation

* spot trade For details about answers of above questions and quiz, feel free to reach us on chat or email us at support@forexinventory.com

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