Below is a small sample of the forex quiz published in Forex for Ambitious Beginners. Fill out the answers in the form on the right side and you'll receive the results within 48 hours. Do you have any questions about the quiz? Don't hesitate to contact us.
Question 1 How are currencies being traded?
A Through central banks
B In pairs
C On the international CFD exchange
Question 2 You think the Euro will rise against the US Dollar. What should you do?
A Go long the Euro
B Go long the Dollar
C Short the Euro
Question 3 What is 'the Spread'?
A The original Heinz Sandwich Spread, often simply called 'The Spread'.
B The difference between bid and ask price of a currency pair.
C The difference between the stop loss and the profit target.
D An erotic police film from the 1980s.
Question 4 When is the forex market open?
A 5 days a week, 12 hours a day.
B 5 days a week, 24 hours a day.
C Monday through Thursday, 24 hours a day.
Question 5 Most forex trading takes place in:
A the U.S.A
B the EU
Question 6 You are a day trader and are having a rough day. You opened six trades earlier and all six have been stopped out. You are pretty frustrated. What would you do?
A Man up and open up six new trades.
B Man up, open six new trades and give them more room to breathe than the last six trades (put your stop loss further away)
C Call it quits for today.
Question 7 You are a beginning trader and have put on a position to speculate on the euro going higher. You have set your stop loss at 30 pips. After about half an hour the trade is very close to your stop loss, but you have a feeling the price will still make a turn for the better. What do you do?
A A successful trader trades on instinct. Listen to your gut and move that stop loss down to give the trade more room.
B See if there are news events supporting your gut feeling. If so, move up the stop loss. If not, only move the stop loss if your gut feeling is unchanged.
D Open a second trade, with the same target as the first. Leave the stop loss of the first trade unchanged
Question 8 What is more important, a good exit strategy or a good entry strategy?
A They are both equally important.
B A good exit strategy.
C A good entry strategy.
Question 9 What should you never do after setting up a range trade?
A Chase the breakout when your stop loss is triggered.
B Use stop losses that are too tight.
C Lose sight of the actual price development.
D Put on a trend trade with another currency pair.
Question 10 What is a good rule of thumb for solid money management?
A Never risk more than 10 percent of your trading capital.
B Never risk more than 20 percent of your trading capital.
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