FOREX BASIC 101 - ICT

What is the largest financial market in the world?

• Stock Market

• Crypto Market

• Forex Market

• Commodities Market

Which currency pair is considered the most liquid in the Forex market?

• EUR/USD

• USD/JPY

• GBP/USD

• AUD/USD

What does 'bull market' signify in financial terms?

• A market showing declining prices

• A market showing no significant movement in prices

• A market showing increasing prices

• A market exclusively for the trading of bull-related commodities

What is a 'pip' in Forex trading?

• A type of trading strategy

• The smallest price move that a given exchange rate can make

• A portfolio investment plan

• A platform for automated trading

What does 'leverage' mean in the context of Forex trading?

• The ability to control large amounts of currency with a small amount of capital

• The use of algorithms to predict currency movements

• The act of borrowing funds to increase one's trading position

• Securing a currency's value with physical assets

What role does the 'spread' play in Forex trading?

• The difference between the bid and ask prices of a currency pair

• A strategy used to predict market movements

• The commission charged by a broker

• The interest rate differential between two currencies

What is 'margin' in the context of Forex trading?

• The total value of a trader's investments

• A type of financial security

• The minimum amount of funds required to keep a trading position open

• The profit made from a successful trade

Which of the following best describes a 'lot' in Forex trading?

• A strategy for choosing currencies to trade

• The standard unit of currency in a trade

• A place where currencies are exchanged

• The time period over which a trade takes place

What is the primary purpose of a 'stop-loss order' in Forex trading?

• To limit a trader's loss on a position

• To prevent the broker from closing a position

• To automatically buy a currency when it reaches a certain price

• To secure a currency's value against market fluctuations

What does 'short selling' mean in the context of Forex trading?

• Buying a currency with the expectation that its value will increase

• Selling a currency you do not own, expecting to buy it back at a lower price

• Investing in short-term trades only

• Withdrawing all investments from the Forex market