OTA - Fundamentals

Question 1

What is Fundamental Analysis

Answer 1

analyzing the overall health of an economy through the scope of retail sales, GDP, interest rates. You can apply FA to the market at large or on individual companies, and you are usually looking with a long-term perspective

Question 2

Technical Analysis

Answer 2

the study of price movement / price action by use of charts, volatility, trend, range, etc.

Question 3

What do we call the tools we use to conduct Technical Analysis

Answer 3

“studies” or technical indicators

Question 4

There are a lot of players in the financial market. What are the two categories that capture every person or entity involved in the markets?

Answer 4

1. Sellers and Buyers

2. Products

Question 5

Explain the Reward-to-Risk Ratio and how it is calculated

Answer 5

the ratio comparing potential profits on a trade to the potential loss on the trade

Reward / Risk

Question 6

Long Position

Answer 6

a position that is bought now with the intent to sell later at a higher price

Question 7

Short Position

Answer 7

a position that is sold now with the intent to buy later at a lower price