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30 Question’s Answers You Should Know Before Start Forex Trading

Foreign exchange trading was once something that people only did when they needed foreign currency to use when traveling in other countries.

These days, when you hear someone refer to foreign exchange trading or forex, they are usually referring to a type of investment trading that has now become common.
Just like with trading stocks, forex traders can speculate on the fluctuating values of currencies between two countries, and it’s done for profit.

If you are a newbie in forex trading you should read these 30 question and their answers carefully.

A standard lot is the equivalent to?

100.000

What is the second most traded currency?

EUR

What is the most traded pair on the currency market?

EUR/USD

What is another term for the ask price?

Offer Price

If you need to buy currency you will use?

Ask Price

What is the quote currency in USD/JPY?

JPY

Based on the average pip range per day, which are the best days to trade?

Tuesday, Wednesday, Thursday

The forex market can be broken up into four major trading sessions, what are they?

London Session New York Session Sydney Session Tokyo Session

What does a 5:1 reward/risk ratio mean?

If you risk $200 you have a chance of winning $1000.

Which indicator is used to determine the strength of a trend?

ADX

Which market has more liquidity?

Forex

Which of the following is not a major currency pair?

EUR/GBP

When the market is on an uptrend, what you should do?

Go long on a retracement at a Fibonacci support level.

How big is the foreign exchange market?

$5.1 trillion

Number of units in a nano lot?

100

What does EA mean in trading?

Expert Advisor

What is the base currency in GBP/USD?

GBP

What type of currency pair is USD/MXN?

Exotic

How many hours a day is the forex market open?

24 Hours

In an uptrend, the price usually forms…

Higher highs and higher lows.

In the quote EUR/USD = 1.10738, what is one pip equivalent to?

0.0001

What is the number one indicator?

Price itself

How many tops or bottoms does it take to confirm a trend line?

3 Lines

What do long white candlesticks indicate?

Buyers were in control.

The Fibonacci retracement works best when the market is?

Trending

What is the largest currency trading center in the world?

London

The higher the value of ADX, the stronger the trend. is it True or False?

True

When price breaks through a support level, it could potentially become a

Resistance Level

The first rule of trading is to?

Protect your money.

In a trending market, what are the best times to buy?

On the pullbacks.

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