What Are The Fundamental Basics Of Forex Trading?

Trying to know more about Forex Trading and feel that everything is overwhelming? Here is an extensive article to Forex Trading Fundamental.

• Question 01

  What is the Foreign Exchange market commonly known as?

  Your Answer

  • A.Stock Exchange

  • B.Forex

  • C.Cryptocurrency Market

  • D.Derivatives Market

• Question 01

  What is the basic concept of forex trading?

  Your Answer

  • A.Buying and selling stocks

  • B.Exchanging commodities

  • C.Exchanging one country's currency for another

  • D.Trading real estate

• Question 01

  What does OTC stand for in the context of the Foreign Exchange market?

  Your Answer

  • A. Over the Counter

  • B.Over Time Currency

  • C.Open Trading Commission

  • D.On-The-Clock

• Question 01

  In the quote USD/JPY = 125.00, what is the base currency?

  Your Answer

  • A.Japanese Yen (JPY)

  • B.US Dollar (USD)

  • C.Euro (EUR)

  • D.British Pound (GBP)

• Question 01

  What is the standard size of a lot in forex trading?

  Your Answer

  • A.10,000 units of the base currency

  • B.100,000 units of the base currency

  • C.1,000 units of the base currency

  • D.50,000 units of the base currency

• Question 01

  How are profits and losses calculated in forex trading?

  Your Answer

  • A.Position size multiplied by leverage ratio

  • B.Pip movements multiplied by position size

  • C.Leverage ratio multiplied by exchange rate

  • D.Pip movements divided by position size

• Question 01

  What does the spread represent in forex trading?

  Your Answer

  • A.The difference between the bid and ask prices

  • B.The total market value

  • C.The movement of currency pairs

  • D.The closing price of the day

• Question 01

  What is a mini lot in forex trading?

  Your Answer

  • A.100,000 units of the base currency

  • B.10,000 units of the base currency

  • C.1,000 units of the base currency

  • D.50,000 units of the base currency