FOREX And Comex Trading Quiz! Trivia
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Forex and Comex trading quiz trivia. These two markets differ in what they use to trade, while on is fully focused on currencies the other focuses on trading commodities such as high valued metals. By taking this quiz you will get to test out what you know about these two markets and how to make profits using specific rules. Give it a shot and see what more you might learn!
- 1.
What is Forex trading?
- A.
Forex trading means one currency bought or sold against another currency.
- B.
Forex trading means where currency pairs are traded.
- C.
Forex trading means buying or selling currency.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
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.Rate this question:
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- 2.
What is direct currency pairs?
- A.
When quoted currency is USD
- B.
When base currency is USD
- C.
When there is no USD
- D.
All of the above
Correct Answer
A. When quoted currency is USDExplanation
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.Rate this question:
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- 3.
What is Indirect Currency pairs?
- A.
When base currency is USD
- B.
When base currency is GBP
- C.
When quoted currency is USD
- D.
None of the above
Correct Answer
A. When base currency is USDExplanation
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.Rate this question:
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- 4.
What is PIP?
- A.
Fourth Decimal point in a currency Pair
- B.
Third decimal point in a currency Pair
- C.
Fifth Decimal in a currency Pair
- D.
All of the above
Correct Answer
A. Fourth Decimal point in a currency PairExplanation
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".Rate this question:
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- 5.
What is a Standard lot size in Spot Forex?
- A.
100000
- B.
1000
- C.
1000000000
- D.
10
Correct Answer
A. 100000Explanation
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.Rate this question:
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- 6.
A trader Long 1 Standard Lot of USD/JPY @122.10 and close position @122.50 Calculate Profit and Loss in USD?
- A.
326.53 $
- B.
300 $
- C.
250 $
- D.
None of the above
Correct Answer
A. 326.53 $Explanation
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.Rate this question:
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- 7.
What is the standard Lot size of Silver COMEX?
- A.
3000 Troy Ounce
- B.
5000 Troy Ounce
- C.
300 Troy Ounce
- D.
500000Troy Ounce
Correct Answer
B. 5000 Troy OunceExplanation
The standard lot size of Silver COMEX is 5000 Troy Ounce.Rate this question:
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- 8.
Calculate P&L? Silver 1 Lot buy @15.10 and sold @15.20?
- A.
700 USD
- B.
500 USD
- C.
900 USD
- D.
1000USD
Correct Answer
B. 500 USD -
- 9.
A trader want to trader 20 Lots of EUR/USD pair and margin for 1 lot is 1000 $ how much margin he required to trade 20 Lots?
- A.
20000 USD
- B.
5000 USD
- C.
40000 USD
- D.
1000 USD
Correct Answer
A. 20000 USDExplanation
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.Rate this question:
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- 10.
One Troy Ounce has how many grams?
- A.
31.104 Grams
- B.
30.104 Grams
- C.
300 Grams
- D.
33.104 Grams
Correct Answer
A. 31.104 GramsExplanation
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.Rate this question:
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- 11.
A trader bought 1 standard Lot of GBP/JPY @ 177.90 and sell @ 178.20 Calculate P&L in USD? USD/JPY = 119.20
- A.
251.67 USD
- B.
241.20 USD
- C.
351.76 USD
- D.
None of the above
Correct Answer
A. 251.67 USDExplanation
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.Rate this question:
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- 12.
A trader Bought GBP/AUD @ 1.8890 and Sell 1.8940 calculate p&l in USD? AUD/USD = 0.7860
- A.
393 USD
- B.
400 USd
- C.
500 USD
- D.
None of the above
Correct Answer
A. 393 USDExplanation
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.Rate this question:
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- 13.
Trader Bought 2 Standard Lot of Gold Comex @1150 and sold 2 Lots @1154 calculate P& L?
- A.
400 $
- B.
800 $
- C.
700 $
- D.
All of the above
Correct Answer
B. 800 $Explanation
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.Rate this question:
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- 14.
Biggest Spot market of the world for Gold and Silver?
- A.
NYMEX
- B.
COMEX
- C.
UK
- D.
INDIA
Correct Answer
C. UKExplanation
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.Rate this question:
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- 15.
IF a trader trade says I am trading in OTC (half Lot or .50 )of crude oil what will be Lot size for him?
- A.
5 Barrel
- B.
50 Barrel
- C.
500 Barrel
- D.
1000 barrel
Correct Answer
C. 500 BarrelExplanation
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.Rate this question:
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- 16.
Main Trade timings of COMEX and NYMEX?
- A.
5 PM to 10 PM IST
- B.
6 PM to 11.55 PM IST
- C.
5 PM to 6 PM IST
- D.
5 AM to 11 PM IST
Correct Answer
B. 6 PM to 11.55 PM ISTExplanation
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.Rate this question:
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- 17.
Rollover Interest charge in Future Currency Contract when a trader holds an open position more than 24 Hours?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
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.Rate this question:
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- 18.
IF EUR/USD pair BID ASK 1.1200 1.1203 How much is the Spread ?
- A.
30PIPS
- B.
3 PIPS
- C.
40 PIPS
- D.
1 PIPS
Correct Answer
B. 3 PIPSExplanation
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.Rate this question:
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- 19.
What is the Federal Reserve?
- A.
Central Bank of USA
- B.
Central Bank of Europe
- C.
Central Bank of China
- D.
Central bank of Japan
Correct Answer
A. Central Bank of USAExplanation
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.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 24, 2015Quiz Created by
Vinod Mankare
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