12 Questions
What is the primary cause of order gaps in the financial markets?
Sudden changes in market sentiment
Which of the following is the best way to identify potential trading opportunities from order gaps in the VIX 100?
Tracking the difference between consecutive bid and ask prices
In the context of analyzing order gaps, which of the following technical indicators would be the LEAST useful?
Fibonacci retracement levels
What is the primary purpose of the blue and red lines in the order gap diagram provided in the text?
To represent the bid and ask prices of the asset
Which of the following is the LEAST important factor to consider when analyzing the impact of an order gap on the VIX 100?
Analyst recommendations
Which of the following statements about order gaps in the VIX 100 is INCORRECT?
Order gaps are always caused by a lack of trading volume
When trading the VIX 100, which of the following strategies aligns with a gap up scenario?
Gap Fading
Which of the following is NOT a recommended step in trading the VIX 100 gap opportunities?
Execute trades without setting entry and exit points.
If the VIX 100 experiences a gap down, which strategy would be appropriate?
Gap Trading
What is the primary purpose of utilizing stop-loss orders when trading the VIX 100 gap opportunities?
To manage risk and protect capital
When should you execute your trade to capitalize on the VIX 100 gap opportunity?
Immediately after identifying the gap
Which of the following is NOT a recommended practice when trading the VIX 100 gap opportunities?
Trade with capital you cannot afford to lose
Learn about order gaps which occur when there is a significant difference between bid and ask prices of an asset. Explore how to identify these gaps by monitoring visual representations and understanding the reasons behind them.
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