Which of the following statements best describe “high volatility”

alternative 1

When the price fluctuates in a very wide range within a short period of time.

alternative 2

When the price fluctuates in a very narrow range within a long period of time.

alternative 3

A term used to describe a price decrease.

The CAC 40 has a sell price of 5000 and a buy price of 5002. You open a long (buy) trade of 20 contracts, equal to €20 per point. The price increases to a sell price of 5006 and a buy price of 5007. You close your trade.

What is your profit?

alternative 1

€120

alternative 2

€80

alternative 3

€40

Which of the following processes are important in minimising risk when trading forex?

alternative 1

Being aware of leverage levels used.

alternative 2

Knowing and understanding how the market operates.

alternative 3

Monitoring any positions you hold that are currently open.

What would happen if your trading account’s margin level fell below 50%?

alternative 1

All trades would be closed.

alternative 2

Nothing.

alternative 3

Your account will be frozen.

What are the risks of trading leverage products?

alternative 1

You can lose the deposit you initially put down to open a trade.

alternative 2

You may suffer losses normally associated with a much larger investment.

alternative 3

Highly leveraged transactions are subject to signlificant changes in value as a result of realatively small changes in the value or level of an underlying asset.