Kindergarten Flashcards

1
Q

In forex, what are the three main types of analysis?

A

Fundamental, Technical, Sentiment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which type of analysis looks at historical price movements to determine the current trading conditions and potential price movement?

A

Technical Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which type of analysis looks at economic, social, and political forces that affect the supply and demand of an asset?

A

Fundamental Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

If you wanted to buy the euro because Germany’s economy is booming, which type of analysis are you doing?

A

Fundamental Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When a trader believes that price will go up, he is feeling…

A

Bullish

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The market reflects all available market information because all traders have access to the same pieces of data. True or False?

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Support and resistance levels are associated with what type of analysis?

A

Technical Analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which kind of chart draws together one closing price to the next closing price over a certain period of time?

A

Line Chart

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The bar chart is also called the…

A

OHLC Chart

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does the peak of the upper shadow of a candlestick indicate?

A

High Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Also called a Market Maker, this type of broker makes money from FIXED pip spreads and sometimes taking the opposite side of their clients positions.

A

Dealing desk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

This type of NDD broker allows its clients to see the “depth of market,” or the buy and sell orders of other trade participants.

A

Electronic Communication Network (ECN)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

This type of NDD broker directly uses its network of liquidity providers to determine the best bid/ask price for a position.

A

Straight Through Processing (STP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What’s the difference between a Dealing Desk (DD) and a No Dealing Desk (NDD) broker?

A

In the absence of takers, a DD broker takes the opposite side of your trade, while a NDD broker links your trade to liquidity providers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Do Dealing Desk brokers have variable pip spreads?

A

No Dealing Desk brokers have fixed spreads!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

STPs have automatic execution without requotes. True or False?

A

False

17
Q

Which is not an important things to consider in choosing a broker?

A

Location

18
Q

The Financial Conduct Authority (FCA) is a regulatory body of all providers of financial services in…

A

the UK

19
Q

What are bucket shops in trading?

A

Sneaky brokerage firms that “book” a client’s orders without really executing them

20
Q

What is one good way to separate bad brokers from good ones?

A

Check out forex forums for other traders’ opinions.

21
Q

Which of the following is a good way to protect yourself against sneaky brokers?

A

Compare price feeds of brokers

22
Q

No matter how fancy your trading platform is, you will still end up losing without

A

Proper trading discipline

23
Q

Why is it preferable to trade on DEMO for at least six months before opening a live account?

A

Gives you time to develop your trading methods in different environments.