Forex market questions and answers

Free Forex Quiz | Take the Quiz and See How You Did! - Forex for Ambitious Beginners

 

forex market questions and answers

C To have at least 10 times the trading capital needed to produce 1 winning trade on average. D To have at least 20 times the trading capital needed to produce 1 winning trade on average. You can find the complete forex quiz, comprised of 60 questions and detailed explanations of the answers, in Forex for Ambitious Beginners. Jun 05,  · Top Questions About Foreign Trading and The Foreign Exchange Market. Last Updated on 29th July Foreign exchange trading is the biggest financial market in the world. Even though its popularity has grown drastically in the last few years, forex is . Mar 20,  · + Forex Management Interview Questions and Answers, Question1: Give a full definition of the market for foreign exchange? Question2: What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange? Question3: Who are the market participants in the foreign exchange market? Question4: How are foreign exchange 80%(4).


Foreign Exchange Questions and Answers - Forex Q & As


What is the difference between an "intraday" and "overnight position"? Intraday positions are all positions which are opened and closed anytime during normal trading. Overnight positions are positions that are still on at the end of normal trading hours, which are usually rolled over by your Forex broker based on the currencies interest rate differentials to the next day's price. How are currency prices determined? Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability.

Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.

How do I manage risk? The most common risk management tools in Forex trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received.

A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential forex market questions and answers should the market move against an investor's position.

The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed. What kind of forex trading strategy should I use? Currency traders make decisions using both technical factors and economic fundamentals, forex market questions and answers.

Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, forex market questions and answers, occur when unexpected forex market questions and answers happen.

The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that forex market questions and answers the market rather than the event itself.

How often are trades made? Market conditions dictate trading activity on any given day. As a reference, the average small to medium trader might trade as often as 10 times a day. How long are positions maintained?

As a general rule, a position is kept open until one of the following occurs: 1 realization of sufficient profits from a position; 2 the specified stop-loss is triggered; 3 another position that has a better potential appears and you need these funds. What is a Limit order? A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received.

What is a Stop Loss order? A stop loss order is an order type whereby an open position is automatically liquidated at a specific price, forex market questions and answers. Often used to minimize exposure to losses if the market moves forex market questions and answers an investor's position. As an example, if an investor is long USD at

 

Forex trading questions and answers

 

forex market questions and answers

 

Mar 20,  · + Forex Management Interview Questions and Answers, Question1: Give a full definition of the market for foreign exchange? Question2: What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange? Question3: Who are the market participants in the foreign exchange market? Question4: How are foreign exchange 80%(4). Sep 27,  · Here is a collection of forex trading quiz questions with answers for you to test your forex trading skills. It ia advised to take the forex quiz below to test your forex knowledge before you start to trade. If you have already started, take it and make sure you know the basics of forex trading. Forex Trading Quiz Questions and Answers. Jun 05,  · Top Questions About Foreign Trading and The Foreign Exchange Market. Last Updated on 29th July Foreign exchange trading is the biggest financial market in the world. Even though its popularity has grown drastically in the last few years, forex is .