Forex exchange market - Study guides, Class notes & Summaries

Lot Size - ANSWER-What traders use to determine how much money per pip one wants to make. To convert Lot Size into $$$ - Lot Size X 10 = Actual amount per Pip. Example: (Lot Size) 0.01 X 10 = $0.10 per Pip Pip - ANSWER-The smallest change in value for any given Forex source Entry point - ANSWER-The level or price at which a trader enters into a trade (buy/sell) Stop loss order - ANSWER-An order that you place with your FX broker and CFD Broker in order to sell a security when i...

functions of foreign exchange market - ANSWER--transfer purchasing power between countries -obtain/provide credit of international trade transactions -minimize exposure to the risks of exchange rate changes dimensions of foreign exchange market - ANSWER-1. structure 2. transactions 3. size 4. methods of stating exchange rates, quotations and changes in exchange rates three major trading sessions - ANSWER--Asian session (Tokyo) -European session (London) -North American session...

What are the most popular financial instruments for retail traders? - ANSWER-Retail forex, spot FX, currency futures, currency options, currency exchange-traded funds (or ETFs), forex CFDs, forex spread betting Define "financial instrument". - ANSWER-Financial instruments are different ways to invest or speculate in currencies. What are 'futures'? - ANSWER-contracts to buy or sell at a specific date in the future at a price specified today. details the price at which a curren...

What is Forex? - ANSWER-The global market that allows the exchange of currency What allows you to make money in the forex exchange? - ANSWER-Changes in exchange rates What does Forex stand for? - ANSWER-Foreign Exchange Market What is the daily trade volume of forex? & What is the daily trade volume for retail traders (us)? - ANSWER-$5 trillion - $1.8 Trillion What is the trade volume of the NYSE? - ANSWER-$22.4 billion What is traded in Forex? - ANSWER-Fiat & Crypto Currency H...

How much money should you generally start with forex trading? - ANSWER-£250.00 what is the price of the currency a reflection of? - ANSWER-a reflection of what the market thinks about the current and future condition of a country's economy compared to other economies. what are the two main aims of a forex trader? - ANSWER-To buy a currency pair when exchange rates are expected to rise and to sell a currency pair when exchange rates are expected to fall. what are the currency pairs div...

Forex trading - ANSWER-1. Simultaneous exchanging of one currency for another 2. No physical location or central exchange 24hr trading Customers - ANSWER-1. Corporation, hedge funds, mutual funds, pension funds, central banks 2. Trade with a dealer Dealers - ANSWER-1. Mostly large banks take customer orders 2. Make markets from owned inventory Inter dealer market - ANSWER-1. Direct dealing - dealer to dealer (Phone, electronically) 2. Indirectly (Inter dealer brokers (phone, electro...

Assignment Correct Answer Any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor Who is not an Investment Advisor? Correct Answer A Bank, Lawyer, accountant, engineer, teach whose performance of such services is solely incidental to the practice of his profession, Broker-dealer (commission only)published of any bona fide newspaper, magazine, business publication, rating systems (Moodys, etc.) What does it mean when someone has "Control"? Corre...

How to Make Money Trading Forex - ANSWER-In the forex market, you buy or sell currencies. The object of forex trading is to exchange one currency for another in the expectation that the price will change. More specifically, that the currency you bought will increase in value compared to the one you sold. How to Make Money Trading Forex - ANSWER-*EUR 10,000 x 1.18 = US $11,800 ** EUR 10,000 x 1.25 = US $12,500 For example, the EUR/USD exchange rate indicates how many euros can purchase one U...

Currency Futures - ANSWER-contracts to buy or sell amounts of specified currency at some future date Currency Options - ANSWER-The option or the right, but not the obligation, to exchange a specific amount of currency on a specific future date and at a specific agreed-on rate Downside of Currency Options - ANSWER-limited hours and lower liquidity Currency ETFs(Exchange Traded Funds) - ANSWER-ETFs are created and managed by financial institutions who buy and hold currencies in a fund. Th...

INTERNATIONAL BUSINESS CHAPTER 10 EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Foreign Exchange Risk Correct Answer: The adverse consequences of unpredictable changes in exchange rates that can affect business deals. For example, major inflation/deflation Exchange Rate Correct Answer: The rate at which one currency is converted into another. Exchange rates are explained through the value of another currency Strongest World Currencies Correct Answer: US Dollar...