How to Make Money Trading Forex Exam
Questions and Answers
1. How to Make Money Trading Forex Correct Answer: In the forex market, you buy or sell
currencies. The object of forex trading is to exchange one currency for another in the expectation that
the price will change. More specifically, that the currency you bought will increase in value compared to
the one you sold.
2. How to Make Money Trading Forex Correct Answer: *EUR 10,000 x 1.18 = US
$11,800
** EUR 10,000 x 1.25 = US $12,500
For example, the EUR/USD exchange rate indicates how many euros can purchase one U.S dollar, or how
many U.S dollars you need to buy one euro
3. How to Read a Forex Quote Correct Answer: The reason they are quoted in pairs is because,
in every foreign exchange transaction, you are simultaneously buying one currency and selling
another.
4. How to Read a Forex Quote Correct Answer: Here is an example of a foreign exchange rate
for the British pound versus the U.S. dollar Correct Answer:
5. How to Read a Forex Quote Correct Answer: In the example above, you have to pay
1.51258 U.S. dollars to buy 1 British pound
6. How to Read a Forex Quote Correct Answer: When buying, the exchange rate tells you
how many units of the base currency you get for selling one unit of the quote currency.
7. How to Read a Forex Quote Correct Answer: When selling, the exchange rate tells you
how many units of the quote currency you get for selling one unit of the base currency.
8. How to Read a Forex Quote Correct Answer: The base currency is the "basis" for the
buy or the sell.
9. Long/Short Correct Answer: If you want to buy (which actually means buy the base currency and
sell the quote currency), you
want the base currency to rise in value and then you would sell it back at a higher price.
10. Long/Short Correct Answer: If you want to sell (which actually means sell the base currency
and buy the quote currency), you want the base currency to fall in value and then you would buy it
back at a lower price
11. The Bid, Ask and Spread Correct Answer: All forex quotes are quoted with two
prices Correct Answer: the bid and ask. For the most part, the bid is lower than the ask price
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Questions and Answers
1. How to Make Money Trading Forex Correct Answer: In the forex market, you buy or sell
currencies. The object of forex trading is to exchange one currency for another in the expectation that
the price will change. More specifically, that the currency you bought will increase in value compared to
the one you sold.
2. How to Make Money Trading Forex Correct Answer: *EUR 10,000 x 1.18 = US
$11,800
** EUR 10,000 x 1.25 = US $12,500
For example, the EUR/USD exchange rate indicates how many euros can purchase one U.S dollar, or how
many U.S dollars you need to buy one euro
3. How to Read a Forex Quote Correct Answer: The reason they are quoted in pairs is because,
in every foreign exchange transaction, you are simultaneously buying one currency and selling
another.
4. How to Read a Forex Quote Correct Answer: Here is an example of a foreign exchange rate
for the British pound versus the U.S. dollar Correct Answer:
5. How to Read a Forex Quote Correct Answer: In the example above, you have to pay
1.51258 U.S. dollars to buy 1 British pound
6. How to Read a Forex Quote Correct Answer: When buying, the exchange rate tells you
how many units of the base currency you get for selling one unit of the quote currency.
7. How to Read a Forex Quote Correct Answer: When selling, the exchange rate tells you
how many units of the quote currency you get for selling one unit of the base currency.
8. How to Read a Forex Quote Correct Answer: The base currency is the "basis" for the
buy or the sell.
9. Long/Short Correct Answer: If you want to buy (which actually means buy the base currency and
sell the quote currency), you
want the base currency to rise in value and then you would sell it back at a higher price.
10. Long/Short Correct Answer: If you want to sell (which actually means sell the base currency
and buy the quote currency), you want the base currency to fall in value and then you would buy it
back at a lower price
11. The Bid, Ask and Spread Correct Answer: All forex quotes are quoted with two
prices Correct Answer: the bid and ask. For the most part, the bid is lower than the ask price
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