Question on basic

  What is a pip?

• a.     A unit of measurement for currency pairs

• b.    A type of currency

• c.     A trading strategy

How is the value of a pip calculated?

• a.     By multiplying the pip value by the exchange rate

• b.    By dividing the exchange rate by the pip value

• c.     By subtracting the exchange rate from the pip value

What is the pip value for EUR/USD if the exchange rate is 1.1800 and the trade size is 100,000 units?

• a.     $10

• b.    $8.40

• c.     $11.80

What is the pip value for USD/JPY if the exchange rate is 108.50 and the trade size is 50,000 units?

• a.     4.60 JPY

• b.    5.50 JPY

• c.     54.00 JPY

  What is the purpose of a stop loss?

• a.     To limit losses if the market moves against you

• b.    To realize profits at a specific price

• c.     $18.00c.     To open a position at a specific price

What is the purpose of a take profit?

• a.     To realize profits at a specific price

• b.    To limit losses if the market moves against you

• c.     To open a position at a specific price

    What is a stop loss?

• a.     An order to close a position if the market moves against you

• b.    An order to open a position at a specific price

• c.     An order to take profits at a specific price

   What is a take profit?

• a.     An order to close a position at a specific price to realize profits

• b.     An order to open a position at a specific price

• c.     An order to close a position if the market moves against you

    How is the stop loss distance calculated?

• a.     By subtracting the stop loss price from the entry price

• b.    By adding the stop loss price to the entry price

• c.     By multiplying the stop loss price by the entry price

     How is the take profit distance calculated?

• a.     By subtracting the take profit price from the entry price

• b.    By adding the take profit price to the entry price

• c.     By multiplying the take profit price by the entry price