Forex Trading FAQ
đ Forex Trading FAQ (Questions & Answers)
đ° BASIC FOREX (1â25)
- What is Forex?
Foreign Exchange market where currencies are traded. - What is Forex trading?
Buying and selling currencies to make profit. - Is Forex legal?
Yes, in most countries including Bangladesh (with restrictions). - Who controls Forex market?
No single controller; itâs a decentralized global market. - What is a currency pair?
Two currencies traded together (EUR/USD). - What is base currency?
First currency in a pair (EUR in EUR/USD). - What is quote currency?
Second currency in a pair (USD in EUR/USD). - What is pip?
Smallest price movement in Forex. - What is lot size?
Trading volume (Standard, Mini, Micro). - What is leverage?
Borrowed capital to increase trading power. - What is margin?
Required money to open a trade. - What is spread?
Difference between buy and sell price. - What is broker?
Company that provides trading platform. - What is trading platform?
Software like MT4/MT5 for trading. - What is MT4?
MetaTrader 4 trading software. - What is MT5?
Advanced version of MT4. - What is bid price?
Price to sell currency. - What is ask price?
Price to buy currency. - What is swap?
Overnight holding cost/interest. - What is liquidity?
How easily currency can be traded. - What is volatility?
Speed of price movement. - What is market order?
Instant buy/sell order. - What is pending order?
Future price-based order. - What is stop loss?
Automatic loss protection level. - What is take profit?
Automatic profit target level.
đ TECHNICAL ANALYSIS (26â45)
- What is technical analysis? Price chart study.
- What is candlestick? Price movement representation.
- What is trend? Market direction.
- Types of trend? Uptrend, downtrend, sideways.
- What is support? Price bounce zone.
- What is resistance? Price rejection zone.
- What is breakout? Price crossing level.
- What is fakeout? False breakout.
- What is indicator? Technical tool.
- What is RSI? Momentum indicator.
- What is MACD? Trend indicator.
- What is moving average? Trend smoothing tool.
- What is Fibonacci? Retracement tool.
- What is chart pattern? Price formation.
- What is head & shoulders? Reversal pattern.
- What is double top? Bearish pattern.
- What is double bottom? Bullish pattern.
- What is time frame? Chart duration.
- What is scalping? Quick short trades.
- What is day trading? Same-day trading.
đ§ FUNDAMENTAL ANALYSIS (46â60)
- What is fundamental analysis? News-based trading.
- What affects currency price? Economy, news, politics.
- What is interest rate? Central bank rate.
- What is inflation? Price increase rate.
- What is GDP? Economic strength.
- What is unemployment rate? Job situation.
- What is central bank? Currency controlling authority.
- What is news trading? Trading based on news.
- What is NFP? US job report.
- What is CPI? Inflation measure.
- What is sentiment? Market mood.
- What is risk sentiment? Risk appetite level.
- What is safe haven? Stable currency (USD, JPY).
- What is economic calendar? News schedule.
- What is monetary policy? Money control system.
đ° RISK & MONEY MANAGEMENT (61â75)
- What is risk management? Controlling losses.
- Why stop loss important? Protect capital.
- What is risk per trade? % of account risked.
- Safe risk per trade? 1â2%.
- What is reward ratio? Profit vs loss ratio.
- What is drawdown? Account loss level.
- What is capital protection? Avoid big losses.
- What is overtrading? Too many trades.
- What is revenge trading? Emotional trading.
- What is discipline? Rule following.
- What is trading plan? Strategy document.
- What is consistency? Stable performance.
- What is lot management? Adjusting trade size.
- What is margin call? Broker warning.
- What is account blow? Total loss.
đ ADVANCED FOREX (76â90)
- What is algorithmic trading? Bot trading.
- What is high frequency trading? Ultra-fast trading.
- What is institutional trading? Big bank trading.
- What is market structure? Price behavior pattern.
- What is liquidity zone? High order area.
- What is order block? Institutional zone.
- What is smart money? Big trader activity.
- What is price action? Pure chart reading.
- What is confluence? Multiple signals together.
- What is divergence? Indicator mismatch.
- What is hedge? Risk balancing trade.
- What is correlation? Pair relationship.
- What is multi-timeframe analysis? Multiple chart view.
- What is swing trading? Medium-term trading.
- What is position trading? Long-term trading.
â ī¸ COMMON MISTAKES & SUCCESS (91â100)
- Biggest mistake in Forex? No risk management.
- Why traders lose? Emotional trading.
- Can Forex make money? Yes with skill.
- Is Forex gambling? No, if properly traded.
- How long to learn Forex? 3â12 months.
- Best strategy? Simple + consistent.
- Is demo trading useful? Yes for practice.
- Can beginners succeed? Yes with discipline.
- Most important skill? Risk management.
- Secret of success? Consistency + patience.
