FOREX And Comex Trading Quiz! Trivia

To calculate the margin required to trade 20 lots of EUR/USD, we need to multiply the margin for 1 lot (which is $1000) by the number of lots being traded (which is 20). Therefore, the trader would require a margin of $20,000 to trade 20 lots.

A standard lot size in Spot Forex refers to the standardized trading volume of 100,000 units of the base currency. It is the most commonly used lot size in Forex trading and represents a significant position in the market. This size allows traders to have greater control over their trades and manage their risk effectively.

The spread is the difference between the bid and ask prices of a currency pair. In this case, the bid price is 1.1200 and the ask price is 1.1203. By subtracting the bid price from the ask price, we get a difference of 0.0003, which is equivalent to 3 pips. Therefore, the correct answer is 3 PIPS.

The standard lot size of Silver COMEX is 5000 Troy Ounce.

The Federal Reserve is the central bank of the United States. It is responsible for implementing monetary policy, regulating and supervising banks, and maintaining the stability of the financial system. As the central bank, it controls the nation's money supply and interest rates, and plays a crucial role in promoting economic growth and stability.

The trader bought GBP/AUD at a rate of 1.8890 and sold it at a rate of 1.8940. To calculate the profit or loss in USD, we need to consider the exchange rate of AUD/USD, which is given as 0.7860.

First, we calculate the difference between the buying and selling rates of GBP/AUD: 1.8940 - 1.8890 = 0.0050.

Next, we convert this difference to USD using the AUD/USD exchange rate: 0.0050 * 0.7860 = 0.00393.

Finally, we convert this amount to USD by multiplying it with the initial buying rate of GBP/AUD: 0.00393 * 1.8890 = 0.00742.

Therefore, the profit or loss in USD is 0.00742, which is approximately equal to 393 USD.

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PIP stands for "Percentage in Point" and is a unit of measurement used in the forex market to represent the smallest price movement of a currency pair. In most currency pairs, the fourth decimal point represents a PIP. Therefore, the correct answer is "Fourth Decimal point in a currency Pair".

One Troy Ounce is equivalent to 31.104 grams. This is a standard conversion used in the measurement of precious metals such as gold and silver.

The lot size for the trader would be 500 barrels. This is because the trader mentions trading in OTC (over-the-counter) crude oil and specifies trading in half a lot or 0.50. Since a standard lot size for crude oil is typically 1000 barrels, half a lot would be 500 barrels.

The main trade timings of COMEX and NYMEX are from 6 PM to 11.55 PM IST. This means that the trading session for these exchanges starts at 6 PM and continues until 11.55 PM in Indian Standard Time. During this time, traders can actively participate in buying and selling commodities listed on COMEX and NYMEX.

The correct answer is "When quoted currency is USD". This means that direct currency pairs are those where the currency being quoted is the US dollar. In these pairs, the US dollar is the base currency, and the exchange rate shows how much of the quoted currency is needed to buy one US dollar.

The correct answer is "All of the above" because Forex trading involves buying or selling one currency against another currency, it also involves trading currency pairs, and it generally refers to the buying or selling of currency in the foreign exchange market.

The profit and loss in USD can be calculated by taking the difference between the closing price and the opening price, and then multiplying it by the lot size. In this case, the opening price is 122.10 and the closing price is 122.50. The difference between the two is 0.40. Since the trader is long 1 standard lot, the profit and loss in USD would be 0.40 multiplied by the lot size, which is $100,000. Therefore, the profit and loss in USD would be $40,000.

The trader bought 2 standard lots of Gold Comex at a price of $1150 and sold them at a price of $1154. To calculate the profit or loss, we need to find the difference between the selling price and the buying price. The difference is $1154 - $1150 = $4. Since the trader bought and sold 2 lots, the total profit or loss would be 2 * $4 = $8. Therefore, the correct answer is $800.

To calculate the profit or loss in USD, we need to consider the exchange rate between GBP/USD. Since the trader bought GBP/JPY and sold GBP/JPY, we can cancel out the GBP and focus on the JPY/USD exchange rate.

The trader bought at 177.90 and sold at 178.20, resulting in a gain of 0.30 JPY. To convert this gain into USD, we need to multiply it by the USD/JPY exchange rate, which is 119.20.

0.30 JPY * 119.20 USD/JPY = 35.76 USD.

Therefore, the profit or loss in USD is 35.76 USD.

Indirect currency pairs refer to currency pairs where the US dollar (USD) is not the base currency. In this case, the correct answer states that when the base currency is USD, it is considered an indirect currency pair. This means that the USD is the quoted currency, and the exchange rate represents the value of one unit of the base currency in terms of USD.

The correct answer is UK because London is known as the biggest spot market for gold and silver in the world. The London Bullion Market Association (LBMA) sets the global standards for trading and storage of precious metals in the UK, making it a major hub for gold and silver transactions. The London Metal Exchange (LME) also plays a significant role in the trading of metals, including silver. Therefore, the UK is considered the largest spot market for gold and silver globally.

The statement is false because rollover interest charges in future currency contracts are not dependent on the duration of holding an open position. Rollover interest charges are typically incurred when a trader holds a position overnight and the interest rate differential between the two currencies involved in the contract is applied. The duration of holding the position does not determine whether rollover interest charges are applied or not.