Forex trading - Study guides, Class notes & Summaries

What is the FOREX market? - ANSWER-Forex is short for foreign exchange. Forex is the exchange of one currency for another, at an agreed exchange price. Similar to the concept of stocks you want to buy a currency at one price and sell it at a higher price (or sell a currency at one price and buy it at a lower price) in order to make a profit. This market is the world's most traded market with an average turnover in excess of US$ 5.3 trillion per day and is open to major institutions and individu...

Bid-Ask Spread - ANSWER-the difference between the bid price and the asked price Support and Resistance Levels - ANSWER-Support and Resistance are two key levels that can be identified in the market. Support is where pending orders such as buy limits get filled. Which will cause the asset to rise, meaning that buying pressure has increased ( demand ) Resistance is where pending orders such as sell limits get filled. Which will cause the asset to fall, meaning that selling pressure inc...

EUR - ANSWER-Euro USD - ANSWER-US dollar GBP - ANSWER-British pound JPY - ANSWER-Japanese yen CHF - ANSWER-Swiss Franc AUD - ANSWER-Australian dollar CAD - ANSWER-Canadian dollar NZD - ANSWER-New Zealand dollar 7 liquid pairs - ANSWER-EUR/USD , GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD, USD/CAD When is forex "open"? - ANSWER-Forex is run electronically within a network of banks 24 hours , 5 days a week What is forex? - ANSWER-foreign exchange market More in de...

What is the FOREX market? - ANSWER-Online exchange or buying and selling for all foreign currency pairs around the world How can you make money in the Forex market? - ANSWER-You can choose to buy or sell currencies and if you forecast the move correctly, you can make a profit What is a major pair? - ANSWER-Currency pairs where one currency is the US dollar. (USDJPY, EURUSD) What is a minor pair? - ANSWER-Currency pairs that don't involve the US dollar What are examples of some Exoti...

Forex trading Questions and Answers 2024 How much money should you generally start with with forex trading? $250.00 what is the price of the currency a reflection of? a reflection of what the market thinks about the current and future condition of a country's economy compared to other economies. what are the two main aims of a forex trader? To buy a currency pair when exchange rates are expected to rise and to sell a currency pair when exhcange rates are expected to fall. what are t...

What is the FOREX market? - ANSWER-The largest financial market in the world of foreign exchange. What is the trading volume of Forex throughout the day? - ANSWER-Over $5 trillion a day. The Forex market is a _______ ________ _______ Market place meaning it is not centralized. - ANSWER-Over the counter Who are the global market participants in the Forex market? There are four. - ANSWER-1. Governments and central banks 2. Banks and financial institutions. 3. Hedgers 4. Speculators ...

Lot Size - ANSWER-What traders use to determine how much money per pip one wants to make. To convert Lot Size into $$$ - Lot Size X 10 = Actual amount per Pip. Example: (Lot Size) 0.01 X 10 = $0.10 per Pip Pip - ANSWER-The smallest change in value for any given Forex source Entry point - ANSWER-The level or price at which a trader enters into a trade (buy/sell) Stop loss order - ANSWER-An order that you place with your FX broker and CFD Broker in order to sell a security when i...

IACCP (MASTER TERMS) EXAM | QUESTIONS & 100% CORRECT ANSWERS (VERIFIED) | LATEST UPDATE | GRADEA+ Assignment Correct Answer: Any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor Who is not an Investment Advisor? Correct Answer: A Bank, Lawyer, accountant, engineer, teach whose performance of such services is solely incidental to the practice of his profession, Broker-dealer (commission only)published of any bona fide newspaper, magazi...

MAJOR PAIR - ANSWER-Any pair that contains the US Dollar is consider a ______________. USD/JPY - ANSWER-___________________ would be consider an major pair. CROSS PAIR - ANSWER-Any pair that does not contain the US dollar is considered an _____________________. AUD - ANSWER-Which is the base pair in AUD/CAD London - ANSWER-What is the largest trading currency trading center in the world? Commercial Banks - ANSWER-Who are the main stakeholders on the FOREX market? Spread - ANSWE...

How to Make Money Trading Forex - ANSWER-In the forex market, you buy or sell currencies. The object of forex trading is to exchange one currency for another in the expectation that the price will change. More specifically, that the currency you bought will increase in value compared to the one you sold. How to Make Money Trading Forex - ANSWER-*EUR 10,000 x 1.18 = US $11,800 ** EUR 10,000 x 1.25 = US $12,500 For example, the EUR/USD exchange rate indicates how many euros can purchase one U...