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Questions and Answers
What is the primary purpose of trading in forex?
What is the primary purpose of trading in forex?
- To exchange one currency for another simultaneously (correct)
- To facilitate international trade and investment
- To arbitrage pricing discrepancies across different markets
- To speculate on the future value of currencies
What is a pip in the context of forex trading?
What is a pip in the context of forex trading?
- The commission charged by a broker for executing a trade
- The leverage ratio used to increase trade exposure
- The difference between the bid and ask prices
- The minimum price movement of a currency pair (correct)
What is the spread in forex trading?
What is the spread in forex trading?
- The difference between the bid and ask prices (correct)
- The commission charged by a broker for executing a trade
- The maximum loss a trader is willing to accept on a trade
- The amount of leverage applied to a trade
What is the purpose of a position size calculator in forex trading?
What is the purpose of a position size calculator in forex trading?
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What is the recommended risk management rule mentioned in the text?
What is the recommended risk management rule mentioned in the text?
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