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What is leverage and how is it expressed in Forex trading?
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Using borrowed capital to trade larger positions, expressed in ratios like 1:50, 1:100.
What is a primary focus of Technical Analysis in Forex trading?
Studying historical price movements to identify patterns.
Define 'bid price' in Forex trading.
The price at which you can sell the base currency.
What does a 'standard lot' represent in Forex trading?
100,000 units of the base currency.
How long is the Forex market open each week?
From Sunday 5 PM to Friday 5 PM Eastern Time.
How is a 'pip' typically measured in currency pair quotes?
Usually at the 4th decimal place.
Why are major currency pairs recommended for beginners in Forex trading?
Because they are highly liquid and have tighter spreads, making them easier to trade.
What is the base currency in the pair GBP/USD?
GBP (British Pound).
What is the daily trading volume of the Forex market?
Over $6 trillion.
What economic event could significantly influence Forex market volatility?
Central bank decisions or significant political events.
Name a common trend studied in Technical Analysis.
Uptrend, characterized by higher highs and higher lows.
What does high liquidity imply in the Forex market?
Ease of entering and exiting trades without significantly impacting the exchange rate.
What does 'spread' mean in the context of Forex trading?
The difference between the bid price and the ask price.
List a key indicator used in Fundamental Analysis for Forex trading.
Gross Domestic Product (GDP).
What kind of market conditions are characterized by high volatility?
Rapid and significant price changes, with higher risk and reward.
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