Q4 - Trading Quiz - 5

Manisha opened 1.5 lot SELL order of EURUSD with the entry price of USD1,257.10 on Wednesday.

Following the release of positive US Initial Jobless Claims data, she earned significant profit on her order.

The next day, she decided to close the order prior to Federal Reserve policy meeting later that night.

If the order was closed past Wednesday (which warrants for a triple charge in swap), what is his swap charge for this order?

Contract size for EURUSD: 100,000

Swap long: -2.71

Swap short: 1.98

• USD8.91

• USD89.10

• -USD8.91

• -USD89.10

Why does brokers charges triple swap rate for any orders that was hold past Wednesday?

• To account for Saturday and Sunday as it requires 2 working days to process the swap.

• It is based on general consensus that all forex brokers will need to charge triple.

• The swap was triple charged in order to account for processing fee that occurs in the backend.

• The triple charge was initiated in order to pay access fee that is required by the liquidity provider.

Fed Chair Jerome Powell recently announced to increase interest rate further due to rising cost of living.

Following the announcement, USDJPY rose from 130.381 to 134.128. At the same time, World Bank has also released a positive US GDP forecast for the next 3 years. This has helped USDJPY to increase further to 139.177.

What is the total change in value of USDJPY for the first and second rise?

• First rise: 3747 points

  Second rise: 5049 points

• First rise: 374.7 points

  Second rise: 504.9 points

• First rise: 374.7 pip

  Second rise: 504.9 points

• First rise: 374.7 points

  Second rise: 504.9 pips

Pikaa opened 8.7 lot SELL order of EURUSD with the entry price of 0.97810.

Following the announcement of positive CPI data from Germany, she noticed that her order experienced tremendous loss.

If the contract size of EURUSD is 10,000, what is her order's pip value?

• USD8.7

• USD87

• USD8.50

• USD85

Hanif opened several orders for the past few days as the market were volatile and full of opportunities.

The following are his account snapshot:

GBPUSD | Position size: USD100,000 | Required margin: 5%

EURUSD | Position size: USD100,000 | Required margin: 3%

AUDUSD | Position size: USD100,000 | Required margin: 4%

Equity: USD15,000

Based on the information above, what is his free margin?

• USD3,000

• -USD3,000

• USD18,000

• -USD18,000

Garret opened several orders for the past hour due to volatility in the market.

However, as positive speculation towards Federal Reserve began to trickle in, his orders succumb to severe losses.

Below is his account snapshot:

Equity: USD 85,000

Used margin: USD 180,250

If his broker sets the margin call and stop out level at 100% and 50% respectively, what is his margin level and scenario that will be triggered?

• Margin level: 47.15%

  Scenario: Stop out. All his orders will close automatically.

• Margin level: 47.15%

  Scenario: None will be triggered as his margin level is below the stop out level.

• Margin level: 212.05%

  Scenario: None will be triggered as his margin level is above both margin call and stop out level.

• Margin level: 47.15%

  Scenario: Stop out.

  He will receive a notification to deposit additional funds into his account.

"According to reports, Saudi Arabia's Aramco - an oil and gas company has received the approval for IPO."

Based on the statement above, why does company issues shares/stocks in the financial market via IPO?

• To raise funds for the company in order to channel it into their projects.

• To increase the value of the company by enabling shareholders to own a percentage of the company publicly.

• To diversify the company's portfolio of investment by issuing shares.

• To gain exposure into the oil and gas sector by issuing shares in the local financial market.

"China A50 Index opened lower on Monday morning as the market fears over economic implications from China's zero-covid policy."

Based on the statement above, what is the relevance of an index?

• An index can be used as a benchmark over a country's economy.

• To gauge how well it is performing in order to execute risk management strategies on forex orders.

• An index is being used as the benchmark for setting policies in other countries.

• An index is used to execute speculative orders in the financial market.

 

Following the resignation of former UK Prime Minister, Liz Truss, GBPJPY dropped from 162.994 to 150.883. It continued to drop further down to 139.812. What is the number of pip or point for the first and total drop in price?

• First drop = 12111 points

  Total drop = 23182 points

• First drop = 121.11 pips

  Total drop = 231.82 pips

• First drop = 1211.1 pips

  Total drop = 231.82 pips

• First drop = 12.11 points

  Total drop = 23.18 points

The relationship in between leverage and margin can be derived as follows:

Leverage = 1 / Margin Requirement

or

Margin Requirement = 1 / Leverage

Based on the formula above, what is the relationship between both leverage and margin?

• Inverse relationship

• Linear relationship

• Exponential relationship

• Parabolic relationship