Forex Lesson 06 Quiz 06

Welcome to Lesson 06 Quiz 06 on "What is a Pip in Forex Trading?"

1. What is a pip in forex trading?

2. How is the pip value related to profit and loss in forex trading?

3. What is the last decimal number or place in a price quote that represents a pip?

4. In a currency pair like USD/JPY, what is the tick size if the price updates after every $0.50 move?

5. What is the difference between a pipette and a pip in forex trading?

6. How do you calculate the total profit from a trade given the number of pips gained, trade amount, and exchange rate?

7. What is a tick in forex trading?

8. How is tick size determined in forex trading?

9. Which of the following is not a synonym for pip in forex trading?

10. In the trade sample on EUR/USD, if the entry is at 1.3505 and the exit is at 1.3525, what is the profit/loss in pips?

12. What three factors does the pip value depend on in forex trading?