Forex trading Questions and Answers 2024

Forex trading Questions and Answers 2024 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 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.