Forex Trading Basic

What does Forex stand for?

• a) Foreign Expenses

• b) Foreign Exchange

• c) Financial Exchange

• d) Forex Market

Which of these is a major currency pair?

• a) USD/TRY

• b) GBP/JPY

• c) EUR/USD

• d) AUD/CAD

What is a pip in forex trading?

• a) A unit of leverage

• b) The smallest price movement in a currency pair

• c) A type of forex broker

• d) A risk management strategy

What type of analysis focuses on news and economic reports?

• a) Technical Analysis

• b) Fundamental Analysis

• c) Sentiment Analysis

• d) Position Trading

If you believe the price of EUR/USD will rise, what trade should you place?

• a) Sell (Short)

• b) Buy (Long)

• c) Hold

• d) Close Position

What is the purpose of a stop-loss order?

• a) To lock in profits

• b) To limit potential losses

• c) To increase leverage

• d) To determine lot size

What is the best way for a beginner to start trading forex?

• a) Trade with real money immediately

• b) Use a demo account to practice

• c) Ignore risk management

• d) Follow random trade signals

Which of the following is NOT a forex trading strategy?

• a) Scalping

• b) Swing Trading

• c) Investing in Stocks

• d) Day Trading

What does leverage allow a trader to do?

• a) Trade larger positions with a smaller capital

• b) Minimize risk completely

• c) Avoid using a broker

• d) Eliminate market fluctuations

What is an example of a sentiment analysis indicator?

• a) Moving Averages

• b) RSI

• c) Market Trends

• d) GDP Reports