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1
Basics
What does 1 pip represent on the EUR/USD pair?
A 0.001
B 0.0001
C 0.01
D 0.00001
1 pip = 0.0001 on EUR/USD (the 4th decimal place). On USD/JPY it would be 0.01 (the 2nd decimal place).
On EUR/USD, 1 pip = 0.0001 (the 4th decimal place). It is the standardized price increment in Forex.
2
Basics
A candle with a long green (bullish) body and a long upper wick indicates:
A A strong buy signal
B A market with no direction
C Selling pressure at the end of the candle despite the rise
D A bullish gap
The long upper wick shows that sellers pushed the price back down at the end of the period, despite the initial rise — that is a sign of rejection.
A long upper wick = rejection. Buyers pushed, but sellers took back control. That is a signal of selling pressure, not a pure buy signal.
3
Basics
What is support in technical analysis?
A A price level where buyers have historically stepped in, creating a floor
B An indicator that confirms the trend
C The lowest price an asset has ever reached
D The middle line of the Bollinger Bands
Support is a price zone where demand (buyers) has historically been strong enough to stop the price from falling further.
Support is not an absolute fixed point but a price zone where buyers step in regularly, creating a historical "floor".
4
Basics
How many units does a standard lot represent in Forex?
A 1,000
B 10,000
C 50,000
D 100,000
1 standard lot = 100,000 units of the base currency. Mini lot = 10,000. Micro lot = 1,000.
1 standard lot = 100,000 units. That is why position sizing is crucial — even a micro lot (0.01) = 1,000 units.
5
Risk
You have €10,000 of capital and risk 2% per trade. Your stop-loss is 50 pips away on EUR/USD. What is the correct position size?
A 0.20 lot
B 0.40 lot
C 1.00 lot
D 0.04 lot
Risk = 10,000 × 2% = €200. Pip value (1 standard lot EUR/USD) ≈ $10. Size = 200 / (50 × 10) = 0.40 lot.
Calculation: max risk = €200. With a 50-pip SL and $10/pip/lot → 200 / 500 = 0.40 lot. Position sizing is not an estimate, it is an exact calculation.
6
Risk
After a 50% drawdown, what percentage gain do you need to get back to your starting capital?
A 50%
B 75%
C 100%
D 150%
Correct. €10,000 → -50% → €5,000. To get back to €10,000 you need +€5,000 on €5,000 = +100%. That is the fatal asymmetry of losses.
It is 100%. If you go from €10,000 to €5,000 (-50%), getting back to €10,000 takes a +100% gain. That is why protecting your capital is THE absolute priority.
7
Risk
What is the maximum risk per trade recommended for a beginner?
A 1-2% of capital
B 5% of capital
C 10% of capital
D It depends on your gut feeling
1-2% maximum per trade. Risking 1%, it takes 10 losses in a row to lose 10% — that leaves time to correct course.
The answer is 1-2%. Risking more exposes you to irreversible drawdowns. And "gut feeling" is not a risk management strategy.
8
Risk
A trader has a 40% win rate with a Risk/Reward of 1:3. Their expectancy is:
A Negative — they lose money
B Zero — neither gain nor loss
C Impossible to calculate without more data
D Positive — they make money over the long run
Expectancy = (40% × 3) − (60% × 1) = 1.2 − 0.6 = +0.6R per trade. Positive. A 40% win rate can be very profitable with a good R:R.
Calculation: (0.40 × 3R) − (0.60 × 1R) = 1.2 − 0.6 = +0.6R per trade. Positive. The win rate alone means nothing without the R:R.
9
Strategies
What is "confluence" in trading?
A When two currencies move in the same direction
B The crossover of two moving averages
C Several technical factors lining up at the same price level
D A signal confirmed by volume
Confluence = several elements (S/R, EMA, Fibonacci, price action) pointing to the same place. The more confluence there is, the higher the probability.
Confluence is not a specific indicator — it is when SEVERAL factors line up at the same price. Example: support + EMA200 + Fib 61.8% + pin bar = high confluence.
10
Strategies
Which trading style is best suited to a beginner with a full-time job?
A Scalping on M1-M5
B Swing trading on H4-D1
C Aggressive day trading on M15
D High-frequency trading
Swing trading on H4-D1 needs little screen time (15-30 min/day) and cuts stress and spread costs. Ideal for someone who cannot watch the markets continuously.
Swing trading (H4-D1) is the best fit. Scalping and day trading demand hours in front of the screen and a reaction speed that does not fit around a job.
11
Strategies
A backtest shows a 95% win rate over 30 trades with a profit factor of 15. Your reaction:
A Caution — likely over-optimization, sample too small
B Go for it — this is an exceptional strategy
C Double the capital invested immediately
D Buy the robot that runs this strategy
95% WR over 30 trades = a ridiculously small sample + unrealistic results = probably curve fitting (over-optimization on past data). You need at least 100+ trades and forward testing.
This is a huge red flag. 30 trades has no statistical meaning, and a 95% WR is unrealistic. It is the classic profile of an over-optimized backtest that will collapse on a live account.
12
Strategies
What is an Order Block in Smart Money Concept?
A A pending order placed by a retail trader
B An RSI overbought signal
C A zone where institutions placed large orders, often revisited
D A pattern of 5 consecutive candles in the same direction
An Order Block is a zone of institutional accumulation. Price often comes back to it before resuming in the original direction. It is a central concept in SMC.
The Order Block (OB) is a price zone where institutions executed large orders. Price tends to come back and test that zone before continuing its move.
13
Crypto
What fundamental problem does blockchain solve?
A The speed of banking transactions
B The double-spending problem without a trusted third party
C Total anonymity of payments
D Decentralized file storage
Blockchain makes it possible to transfer value digitally without needing a trusted intermediary (a bank), by solving the double-spending problem.
The problem solved is double spending (spending the same digital unit twice) without needing a trusted third party. That is Satoshi Nakamoto's innovation.
14
Crypto
What happens if you lose the seed phrase (12-24 words) for your crypto wallet?
A Customer support can reset it
B You can recover it with your email
C You have to pay a recovery fee
D Your funds are lost forever, with no recourse
"Not your keys, not your coins." The seed phrase is the ONLY proof of ownership in crypto. Lost = funds unrecoverable. No support, no procedure, no recourse.
Your funds are lost PERMANENTLY. Unlike a bank, no one can "reset" a blockchain. That is the price of decentralization.
15
Crypto
A crypto project promises "20% guaranteed monthly return". Your reaction:
A It is a scam — walk away immediately
B Possible if the technology is innovative
C Invest a small amount to test it
D Check the whitepaper before deciding
NOTHING is "guaranteed" in finance. 20%/month = 891%/year. Even the best hedge funds make 15-25%/YEAR. "Guaranteed return" = Ponzi, rug pull, scam. Always.
It is a scam, full stop. "Guaranteed return" is the magic phrase of every Ponzi scheme. No whitepaper changes that mathematical fact.
16
Crypto
The Bitcoin halving happens roughly every:
A 1 year
B 2 years
C 4 years (210,000 blocks)
D 10 years
The halving cuts the miners' reward in half every 210,000 blocks (~4 years). Last halving: April 2024 (6.25 → 3.125 BTC).
It is ~4 years (210,000 blocks). The halvings: 2012, 2016, 2020, 2024. They reduce the issuance of new BTC and have historically been correlated with bull cycles.
17
Safety
According to the AMF, France's financial regulator, what percentage of retail CFD/Forex traders lose money?
A ~50%
B ~75-89%
C ~30%
D ~95%
The AMF reports around 89% of traders losing money (2014 study of 14,799 traders). ESMA, the European securities regulator, requires EU brokers to display this figure (often 75-80%).
The answer is 75-89%. The AMF documented 89% losing money among the 14,799 traders studied. That is the statistical reality of retail trading.
18
Safety
You have just lost 2 trades in a row. What should you do?
A Double your size to win it back quickly
B Change strategy immediately
C Take a "safe" trade by tightening the SL
D Stop trading for the day and review
After 2 losses in a row = stop for the day. That is the anti-spiral rule. Review, breathe, come back tomorrow. The market will still be there.
STOP. Stop for the day. Doubling = revenge trading = destruction. Switching strategy = panic. Tightening the SL = disaster. Discipline is knowing when to stop.
19
Safety
What is the FIRST criterion for choosing a broker?
A The lowest possible spreads
B The maximum leverage offered
C Regulation by a recognized authority (AMF, FCA, CySEC)
D The welcome bonus
Regulation ABOVE all. A low spread is worth nothing if the broker blocks your withdrawals. Check on the regulator's website, not the broker's.
Regulation is criterion no. 1. Low spreads or high leverage are worth nothing if your broker is a scam. Bonuses are in fact banned by serious regulators.
20
Safety
What is THE most important skill for surviving in trading?
A Finding the best entry points
B Protecting your capital and managing risk
C Mastering as many indicators as possible
D Having the best sources of information
Correct. Protecting capital = surviving. Surviving = being able to keep learning. Learning = becoming profitable. Risk management is the foundation of everything.
Risk management is THE number 1 skill. You can have the worst win rate in the world and still be profitable with a good R:R. The reverse is impossible.