What is Forex trading?

1. A) speculating on a currency pair to make profit from its movement.
2. B) a game for grown-ups.
3. C) buying or selling stocks.
4. D) something to avoid.

The wrong answers are B) a game for grown-ups, as although true, not necessarily prevalent to the question. C) buying or selling stocks is stock speculation or trading, and D) something to avoid. While it might be something that gamblers may want to avoid, it can be very profitable for those who understand how to trade the market.

The correct answer is of course A) speculating on a currency pair to profit from its movement. Currency traders buy and sell currencies to profit from movements in the markets.

What is a Forex broker?

1. A) someone who wants to take your money.
2. B) an intermediary that grants access to the interbank market.
3. C) an entity that exchanges money for you.
4. D) a legal entity that provides the opportunity to speculate on the currency market.

The wrong answers are a) someone who wants to take your money. And C) an entity that exchanges money for you, those are money changers.

The correct answers are B) an intermediary of the grants access to the interbank market, as the retail trader does not have the ability to trade directly on the market. This is because of the massive amounts of money that would be necessary to do so. D) a legal entity that provides the opportunity to speculate on the currency market. By offering leverage and access to the markets, a Forex broker allows you to trade in currencies that once were closed to all but the banks and richest people in the world.

A spread is?

1. A) the difference between the asking bid price.
2. B) a fee that the broker charges.
3. C) being taken from the account at the opening of the trade.
4. D) being taken from the trading account at the closing of a trade.

The wrong answer is D) being taken from the account at the closing of a trade.

The correct answers are A) the difference between the ask and the bid price, B) a fee that the broker charges as they quite often make money from the difference between the ask and bid prices, and C) being taken from the trading account at the opening of a trade. This is when the spread is taken from the margin.

The most popular trading platform for retail traders is?

1. A) MetaTrader
2. B) cTrader
3. C) JForex
4. D) All of them

The wrong answers are B) cTrader, C) JForex, and D) All of them.

The correct answer is A) MetaTrader, as it is used at over 300 brokerages around the world.