Explanation : One bad position can erase weeks of gains.
Question 2 / 10
Leverage lets you…
Explanation : With leverage you trade with borrowed money.
Question 3 / 10
Leverage amplifies…
Explanation : Both are multiplied the same way.
Question 4 / 10
With $1,000 and 10:1 leverage, you control…
Explanation : 1,000 x 10 = $10,000 of position.
Question 5 / 10
A common risk rule is to risk per trade only…
Explanation : Capping per-trade risk keeps you in the game after a losing streak.
Question 6 / 10
Position size is set mainly from…
Explanation : The farther the stop, the smaller the position for the same risk.
Question 7 / 10
A 1:3 risk/reward ratio means…
Explanation : At 1:3 you can be wrong often and still come out ahead.
Question 8 / 10
Diversification helps to…
Explanation : Spreading risk reduces the impact of one bad position.
Question 9 / 10
For a trader, volatility is…
Explanation : It creates opportunity but raises risk: size accordingly.
Question 10 / 10
A margin call happens when…
Explanation : The broker then demands funds or closes your positions.
🎯
Save your progress
You're off to a great start! Create a free account to save your progress, earn badges and pick up where you left off. You won't lose your current quiz.