Forex Trading "Pre-School" Exam Test Guide Questions and Answers

What is Forex? - ANSWER-The global market that allows the exchange of currency What allows you to make money in the forex exchange? - ANSWER-Changes in exchange rates What does Forex stand for? - ANSWER-Foreign Exchange Market What is the daily trade volume of forex? & What is the daily trade volume for retail traders (us)? - ANSWER-$5 trillion - $1.8 Trillion What is the trade volume of the NYSE? - ANSWER-$22.4 billion What is traded in Forex? - ANSWER-Fiat & Crypto Currency How is the price of a currency determined? - ANSWER-Direct reflection of the market's opinion on the current and future health of a country's respective economy How are currency symbols determined? - ANSWER-(3 letters)First two letters are the country name, last letter is name of the countries currency. Ex:NZD (New Zeland)(Dollar) What is considered the "Majors"? - ANSWER-Most widely traded currency. Ex(s):USD, EUR, JPY, GBP, CAD, AUD, NZD, CHF Forex Trading definition: - ANSWER-Simultaneously buying one currency and selling another. You buy and sell currency in pairs. What does USD/JPY stand for? - ANSWER-Dollar Yen What does EUR/USD stand for? - ANSWER-Euro Dollar What does AUD/USD stand for? - ANSWER-Aussie Dollar What does USD/CHF stand for? - ANSWER-Dollar Swissy Where is the location of the Forex Exchange? - ANSWER-It does not have a physical location or central exchange Futures contracts - ANSWER-a contract to buy and sell a certain asset at a specified price on a future date.