TH » Test: What is a Pip in Forex, and why is it Important for a Trader?

Test: What is a Pip in Forex, and why is it Important for a Trader?

Question 01: A pip is…

a) A unit of price

b) A unit of profit

c) A unit of efficiency

d) A unit of volatility

Question 02: Which of the following prices ends in a pip?

a) 1.6554

b) 0.99078

c) 109.45

Question 03: Which of the following prices ends in a tick?

a) 1.6554

b) 0.99078

c) 109.45

Question 04: What is the purpose of a trader's calculator?

a) To calculate the cost of one point

b) To calculate the profit of a trade

c) To calculate the loss of a trade

Question 05: What could be the benefit of a calculator if the trading platform calculates the cost of a point itself?

a) For trading plans

b) The trading platform doesn't always calculate correctly

c) For chart analysis

d) For fundamental analysis

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