Forex Lesson 09 Quiz 09

Welcome to Forex Lesson 09 Quiz 09 on "What is Margin in Forex?"

1. What is the margin in forex trading?

2. Why do you need to provide collateral (margin) in forex trading?

3. What is the margin requirement in forex trading?

4. How does margin requirement affect position size in forex trading?

5. In a EUR/USD trade, if the full position size is $100,000 and the margin requirement is 2%, how much margin is required to open and maintain the position?

6. What is a margin call in forex trading?

7. How can you avoid a margin call in forex trading?

8. What does the maintenance margin represent in forex trading?

9. When are margin calls typically based in forex trading?

10. What action should you take if you receive a margin call?

11. What role does the broker play in enforcing margin requirements?

12. How does maintaining a margin percentage help traders in forex trading?

13. What happens if a trader fails to maintain the required margin percentage?

14. Why is it essential to monitor your account regularly when trading on margin?

15. What should traders do during periods of volatile market conditions to manage margin effectively?