Forex Language
True or False: A "mini" lot size is 0.10
TRUE - A "mini" lot is 0.10 which is $1 per pip
What is the formula to find your Take Profit (TP) in pips for a buy?
TP - Entry = Take Profit in pips
True or False: Fundamental analysis helps you understand why price is moving
True - This is why fundamental analysis is so important
What color is the 5 EMA?
Yellow
What does ME stand for?
Market Execution
If you are trading a currency with a 0.01 lot size and you earned 100 pips in the market, how much money did you make in USD?
0.01 is $0.10 per pips = $10.00
What is the formula to find your Max Risk in dollars?
Account size x Max Risk %
Example: If you have a $50K account and you want to risk 1% per trade, you would risk $500 per trade (50,000 x 1%)
True or False: During major news events, the spreads typically decrease.
False - Spreads increase during NFP week and major news events
The Shift is the cross of the 5 EMA and what other EMA?
13 EMA
What does TP stand for?
Take Profit
True or False: If you do not know where to set your Stop Loss, you should just enter the trade.
FALSE - If you do not understand how to calculate or where to set your SL, do not enter the trade.
True or False: To find your Risk to Reward (RR), the formula is TP/Entry
False: The formula for RR is TP/SL
What is Inflation?
Inflation is how much goods cost over time.
What is the name of the candle that solidifies the shift?
The Shift Candle
What does RR (formation) stand for?
Railroad
The difference between the BID and the ASK price of a currency pair is called what?
The Spread
Calculate the ratio for Risk to Reward (RR) for the below:
Risk 10
Reward 38
38/10 = 3.8
RR is 1:3.8
This Monetary Policy comes out at least 8 times per year. What is the Monetary Policy called?
Federal Open Market Committee (FOMC)
W's shift in what direction?
W's shift up so you should look for the buy shift entry
What does SL stand for?
Stop Loss
True or False: Leverage is borrowing money (not physically) from a broker in order to trade.
False - Leverage is how you are able to trade more money that you have
Your account size is $300 and you have a max risk of 2%. What is your Max Risk in dollars?
$300 x 2% (or 0.02) = $6
One of the most volatile news events that happens every month on the first Friday at 8:30am EST is what?
Non-Farm Payroll (NFP)
If the first leg of a M or W is taken out by the second leg, what can the market do?
Consolidate or or continue n the direction of the trend
What does GDP stand for?
Dross-Domestic Product