Test: Introduction to Trading.

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Question 1 of 16

1. Question
A trading session is a given period of time when an asset can be traded.
- True
- False
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Question 2 of 16

2. Question
What does one candle stick represent?
- The range of price movement in a given time period.
- The opening, high, low, and closing price of a trading session.
- The direction of the market in given session.
- All of the above.
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Question 3 of 16

3. Question
A trader placing a bid order is looking to go:
- Long
- Short
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Question 4 of 16

4. Question
What is the advantage of using candlestick charts over line charts?
- They look more professional.
- More information about the session's order flow can be identified and studied.
- Candlesticks indicate the total volume traded in a session.
- There is no discernible advantage.
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Question 5 of 16

5. Question
What does the color of the candle stick represent?
- How many buyers or sellers were present.
- A measure of the momentum during that trading session
- Whether buyers or sellers were in control in a given session.
- The color of the next candle
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Question 6 of 16

6. Question
In any given trade, the more pips made always results in more profit.
- True
- False
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Question 7 of 16

7. Question
What does the lowest point of this candles wick mean?
- It's the closing point of the candle.
- It's the higest price went during the candle's period.
- It's the opening point of the candle.
- It's the lowest point to which price fell during the candle's period.
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Question 8 of 16

8. Question
Who are the main players in the forex and commodities market?
- Governments, central banks, large corporations, and financial institutions.
- Governments and central banks, financial institutions, speculators, and large corporations.
- Governments, central banks, financial institutions, retail speculators.
- Central banks, banks and financial institutions, speculators and large corporations.
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Question 9 of 16

9. Question
What is the main reason(s) large corporations participate in the forex market?
- Manage risk in their international business endeavours.
- Speculate to earn extra investment capital.
- Trade with large, national clients.
- All of the above.
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Question 10 of 16

10. Question
What is the interbank market and how is it different to the retail market?
- Market where financial institutions speculate against each other. The difference is that the interbank market is predominantly used for 'large clients', whereas the retail market is used for 'small clients'.
- Market where financial institutions exchange currencies between each other. The difference is that the interbank market is used predominantly for speculation by large institutions, whereas the retail market is used to offset risk.
- Market where financial institutions exchange currencies between each other. The difference is that the interbank market is predominantly used for 'large clients', whereas the retail market is used for 'small clients'.
- Market where financial institutions exchange currencies between each other. There is no major difference between the two markets.
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Question 11 of 16

11. Question
Retail speculators make up the largest volume in the commodities market.
- True
- False
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Question 12 of 16

12. Question
Why is it important to understand who the players are in the market? Pick as many or as few as you think. You can pick more than one.
- To predict future movements in price.
- To give context to the current movement of price (order flow), since different players have different demands for different assets.
- To understand where we are in the market cycle, by identifying who the buyers and who the sellers are.
- All of the above.
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Hint
Question 13 of 16

13. Question
Which of these statements is true?
- The bigger the spread, the bigger your profit (if the trade goes your way).
- The brokers spread is constant and does not change over time.
- The more more liquid the market, the lower the spread tends to be because there are more bids and offers.
- It is not important to factor in the spread when entering a trade, as there is nothing the trader can do to change it.
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Question 14 of 16

14. Question
If a trader is ‘asking’ for a price, where do they expect price to move?
- Up
- Down
- Sideways (in a range)
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Question 15 of 16

15. Question
How many decimal places are there on JPY markets?
- 1 decimal place
- 2 decimal places
- 3 decimal places
- 4 decimal places
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Question 16 of 16

16. Question
You buy EURGBP at 1.1350 and close the trade at 1.1470 bid price. The spread is 0.0015. How many pips profit did you make?
- 0.0105 pips
- 12 pips
- 1005
- 105
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Mastering Price Action and Technical Analysis.

Test: Introduction to Trading.

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