Forex Trading Questions and Answers
2024/2025 Exam | Get It 100% Correct
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 the currency pairs divided into?
What currency pairs should you start off trading? - ✔✔Majors, exotics and
crosses.
the common currency pairs.
what are majors? - ✔✔developed economies, most liquid, low spreads, stable
are predictable in relation to other asset classes.
what are the top major currencies? - ✔✔USD, EUR, JPY, GBP
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, What are crosses? - ✔✔currency pairs with the absence of the us dollars. you
can have different dominated crosses such as: euro crosses, yen crosses and the
pound crosses.
what are exotic currencies? - ✔✔currencies from developing countries,
extremely liquid, very high spreads.
whta does this pair tell you ? - EUR / USD 1.2302 - ✔✔that one euro is worth
1.2302 us dollars.
describe a micro lot - ✔✔They are the smallest trading size, they = 1,000 units of
currency, their volume(trading size) is 0.01 and they are worth 10p. 10 pips =
£1.00 with a micro lot.
describe a mini lot - ✔✔They are 10x the micro lot, they = 10,000 units od
currency, their volume(trading size) = 0.1 and they are worth £1.00. 10 pips =
£10.00 with a mini lot.
describe a standard lot - ✔✔They are the original and largest trading size, they =
100,000 units of currency, their volume (trading size) = 1.0 and they are worth
£10. 10 pips = £100 with a standard lot.
What does PIP stand for and what does it represent? - ✔✔price interest point, it
represents the smallest change in a currency pair
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
2024/2025 Exam | Get It 100% Correct
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 the currency pairs divided into?
What currency pairs should you start off trading? - ✔✔Majors, exotics and
crosses.
the common currency pairs.
what are majors? - ✔✔developed economies, most liquid, low spreads, stable
are predictable in relation to other asset classes.
what are the top major currencies? - ✔✔USD, EUR, JPY, GBP
1|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, What are crosses? - ✔✔currency pairs with the absence of the us dollars. you
can have different dominated crosses such as: euro crosses, yen crosses and the
pound crosses.
what are exotic currencies? - ✔✔currencies from developing countries,
extremely liquid, very high spreads.
whta does this pair tell you ? - EUR / USD 1.2302 - ✔✔that one euro is worth
1.2302 us dollars.
describe a micro lot - ✔✔They are the smallest trading size, they = 1,000 units of
currency, their volume(trading size) is 0.01 and they are worth 10p. 10 pips =
£1.00 with a micro lot.
describe a mini lot - ✔✔They are 10x the micro lot, they = 10,000 units od
currency, their volume(trading size) = 0.1 and they are worth £1.00. 10 pips =
£10.00 with a mini lot.
describe a standard lot - ✔✔They are the original and largest trading size, they =
100,000 units of currency, their volume (trading size) = 1.0 and they are worth
£10. 10 pips = £100 with a standard lot.
What does PIP stand for and what does it represent? - ✔✔price interest point, it
represents the smallest change in a currency pair
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
