Week 1 – Day 7 Quiz
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Question 1 of 20
1. Question
Which of the following is a tool used to lock in profits in trading?
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Question 2 of 20
2. Question
Which are inherent risks in Forex trading? (Select all that apply)
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Question 3 of 20
3. Question
In the context of Forex, what does the term “leverage” best refer to?
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Question 4 of 20
4. Question
Arrange the following terms in the sequence they were introduced in the video series:
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Risk-Reward Ratio
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Position Sizing
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Stop-Loss and Take-Profit orders
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Risk Management
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Question 5 of 20
5. Question
Match the term with its definition:
Sort elements
- Closes a trade at a specific price to prevent further losses
- Locks in profits at a favorable price
- Identifying, assessing, and mitigating potential losses in investments
- Determining the amount of capital to put on a single trade
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Stop-Loss
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Take-Profit
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Risk Management
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Position Sizing
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Question 6 of 20
6. Question
Match the position sizing method with its description:
Sort elements
- Risks a fixed dollar amount on every trade
- Risks a fixed percentage of your capital on any single trade
- Adjusts based on the market's current volatility
- Uses a constant number of lots or contracts
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Dollar Amount Method
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Percentage Risk
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Volatility Method
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Fixed Method
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Question 7 of 20
7. Question
Which method of position sizing adjusts based on the market’s current volatility?
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Question 8 of 20
8. Question
Which of the following are benefits of using Stop-Loss and Take-Profit orders? (Select all that apply)
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Question 9 of 20
9. Question
Which of the following best defines the term “Risk-Reward Ratio”?
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Question 10 of 20
10. Question
Place the following in order of their potential impact on Forex prices, from highest to lowest:
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Global incidents
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Minor political debates
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Economic announcements
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Expert predictions
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Question 11 of 20
11. Question
Match the following:
Sort elements
- Potentially gain $300 for every $100 risked
- Safety net for trades
- Measure of market's price movement
- Amplifies potential gains and losses
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1:3 Risk-Reward Ratio
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Stop-Loss
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Volatility
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Leverage
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Question 12 of 20
12. Question
For a trader with a $10,000 account, risking 2% per trade means risking $_______ on a single trade.
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For a trader with a $10,000 account, risking 2% per trade means risking $ on a single trade.
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Question 13 of 20
13. Question
Which term refers to the comparison between the amount you’re willing to risk and the potential profit on a trade?
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Question 14 of 20
14. Question
Select all the tools/methods essential for long-term trading success:
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Question 15 of 20
15. Question
What’s the primary purpose of the Take-Profit order in trading?
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Question 16 of 20
16. Question
Arrange the following risk management tools in terms of their significance in a trading sequence:
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Setting Take-Profit
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Determining Position Size
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Placing Stop-Loss
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Calculating Risk-Reward Ratio
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Question 17 of 20
17. Question
Match these concepts with their importance:
Sort elements
- Ensures sustainability in trading
- Protects from detrimental downturns in trades
- Guides decision-making in trades
- Locks in potential gains before market reversal
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Position sizing
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Stop-Loss
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Risk-Reward Ratio
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Take-Profit
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Question 18 of 20
18. Question
Risk management in Forex is about managing risks to an extent where they’re acceptable relative to potential _________.
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Risk management in Forex is about managing risks to an extent where they’re acceptable relative to potential .
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Question 19 of 20
19. Question
In the Forex market, what can cause significant volatility?
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Question 20 of 20
20. Question
Which methods can you use to determine position size? (Select all that apply)
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