Quizzes 9 to 12

Why is it important to trade with a regulated broker?

A) a financial authority supervises the broker.
B) Safety of funds.
C) It doesn’t matter if the broker is regulated or not.
D) It is not important.

The wrong answers are C) it doesn’t matter if the broker is regulated or not, and D) it is not important. Trading with an unregulated broker is asking for trouble, as your funds will be in jeopardy. This is especially true as many Forex traders use brokers in other countries.

The correct answers are A) a financial authority supervises the broker, and B) safety of funds. When a regulatory entity regulates a broker, they must adhere to strict financial laws. This gives you the peace of mind when trading necessary as your deposit will be there when you need it.

A PIP is?

A) the difference between the entry and exit price.
B) Something to smoke.
C) Something that belongs to the broker.
D) A profit or loss traders realize.

The wrong answers are B) something to smoke, and C) something that belongs to the broker.

The correct answers are A) the difference between the entry and exit price, and D) a profit loss traders realize.

The ECB stands for?

A) European Central Bank
B) European Central Boulevard
C) East Central Bahrain
D) European Central Banking

The wrong answers are B) European Central Boulevard, C) East Central Bahrain, and D) European Central Banking.

The correct answer is A) European Central Bank. The European Central Bank is the central bank of the European Union, and one of the largest central banks in the world. It is highly influential in the Forex markets.

Technical analysis is?

A) charting the currency market to forecast future pricing.
B) Looking for historical patterns to forecast future prices.
C) Formed of trend indicators.
D) Formed of oscillators.

There are no wrong answers in this scenario.

The correct answers are A), B), C), and D). The art of technical analysis uses several different types of indicators, including trend indicators and oscillators to predict future pricing based upon historical moves in the currency markets.

The post Quizzes 9 to 12 appeared first on The Diary of a Trader.