• To account for the settlement of trades over the weekend where no swap rates are charged due to the market being closed
• To account for my account processing fees
• As I have leverage, triple swaps are a requirement to make trades
• None of the above

Who is accountable when I make a sell trade instead of a buy trade? 

• I am accountable for my trades, even when I made the incorrect trade
• The BlackBull Markets team is responsible
• My friend is accountable
• No-one is accountable

The only person that is accountable for mistakes you make when trading is yourself. BlackBull Markets accept no responsibility for intended or unintended trades that are made by our clients. Therefore, the answer to this question is “I am accountable for my trades, even when I made the incorrect trade”. 

Which of the following reasons would it be not possible to open a position?

• Your account is not logged in
• You do not have the required margin to open a position
• The market is not open
• All the above 

If you are not logged in to your account, you will not be able to open or modify positions. Likewise, if the market is not open, positions cannot be entered into or exited from. If you are trading on leverage, you may not have the required margin in your trading account to open a position. Therefore, the answer is ‘All the above’. 

Which event would cause volatility in WTI? 

• Political Instability
• Production costs and shortages
• Natural Disasters
• All of the above cause volatility 

Many factors can cause volatility in WTI prices, including Political Instability in oil producing countries, Production costs and shortages, and Natural Disasters that can impact production, among other factors. Therefore, the answer to this question is ‘All of the above' 

Which event would cause volatility in NGAS?

• Political Instability
• Production costs and shortages
• Natural Disasters
• All of the above cause volatility

Many factors can cause volatility in NGAS prices, including Political Instability in Natural Gas producing countries, Production costs and shortages, and Natural Disasters that can impact production, among other factors. Therefore, the answer to this question is ‘All of the above 

When opening a trade on an account, which instruments are available for you to trade on? 

• All listed Forex pairs
• All listed CFD Equities
• All listed indices
• All the above 

When you open an account with BlackBull Markets, all listed forex, CFD equities, and indices are available to trade. Therefore, ‘all the above’ is the correct answer here. 

When is it appropriate to close your position? 

• When I have adhered to my risk tolerance and decide to close the trade
• I should never close my position
• When I get stopped out
• When I have a loss 

The time you choose to close your position should be dependent on your trading strategy as informed by your risk tolerance. Your trading strategy could be guided by the other possible answers in this question, although this is highly unlikely, and not recommended, and the correct answer to this question remains ‘When I have adhered to my risk tolerance and decide to close the trade. ‘ 

When is initial margin required when trading? 

• When you open a trade
• When you close a trade
• None of these options
• Margin is never required 

Initial means “existing or occurring at the beginning”. Therefore, Initial margin is required before you make a trade, and the answer to this question is ‘when you are open a trade’. 

When holding a sell position, will the position be closed when the price reaches the bid or the ask price at 50% margin? 

• Bid
• Ask 

When you have a sell position, you are tracking the bid price, which is the price buyers are willing to pay for the instrument that you are ‘Selling’. Therefore, the answer is “Bid”

When are you most likely to experience the most volatility during a trading session? 

• During an announcement such as NFP
• An earnings release by Morningstar Inc
• When AAPL releases a dividend
• None of the above cause volatility 

Any event can inject volatility in the market. However, typically, the event that would cause the most volatility during a trading session is the NFP. An earnings release from Morningstar would be a relatively minor event, as would AAPL releasing a dividend. 

When are swap fees not charged?

• When I hold a position overnight
• When I have a No-Swap account
• When I have a Prime account, and do not hold the position overnight
• B and C only 

Swap fees are charged when you hold a position overnight on a Standard or Prime account, but not when you have a No-Swap account. Therefore, the answer is “B and C only’. 

When are swap fees charged? 

• 00:00:00 GMT+2/+3
• 00:00:01 GMT+2/+3
• 03:30:10 GMT+2/+3
• 02:00:00 GMT+2/+3 

Swap are debited/credited when you hold a trade from one day to another and are charged during what is called the ‘rollover’. Rollover occurs at 00:00:00 GMT+2/+3, therefore this is the answer. 

What should determine your position sizing? 

• Your decided risk comfort level
• How much profit you want to make
• The volatility of the currency pair you’re are trading
• How lucky you feel 

The thing that should determine your position sizing is the risk level that have deemed comfortable. Your determined risk level should come before all other considerations. 

What margin percentage will cause your positions to be liquidated? 

• 50%
• 75%
• 103.75% 
• Never 

At BlackBull Markets we will stop out an open position when your margin percentage reaches 50%. Note, before this, we will give you a warning, known as a margin call, when your margin percentage reaches 70%.  

What is the difference between a support level and a resistance level? 

• A support level is a low-price level for a security or commodity below which prices do not ordinarily fall, and a resistance level is an upper price level for a security or commodity that is repeatedly reached but not exceeded due to resistance from the market
• A resistance level is a low-price level for a security or commodity below which prices do not ordinarily fall, and a support level is an upper price level for a security or commodity that is repeatedly reached but not exceeded due to resistance from the market
• There is no difference
• None of the above 

A support level represents the price at which buyers come in to support the price, meaning that it is not expected to drop below that price. A resistance level is the price at which buyers dwindle, meaning that the price is not expected to rise above that price. Therefore, we can exclude all but the first answer. 

What is the base currency in USD/CAD?

• AUD
• CAD
• USD
• None of the above 

You can determine the base currency by noting the first currency in a currency pair because this is the base currency. So, in the pair USD/CAD, the base currency is the USD. 

What is the base currency in GBP/AUD?

• AUD
• GBP
• USD
• None of the above

You can determine the base currency by noting the first currency in a currency pair because this is the base currency. So, in the pair GBP/AUD, the base currency is GBP. 

What is the ask price? 

• Expected swap short
• Price which sellers are willing to take for instrument
• Interest rate differential
• Australian government bond yield 

The ask price represents the price that sellers are asking for for the asset they want to sell. They are effectively “asking” for a certain about of money for the asset. Therefore the answer is “price which seller are willing to take for an instrument” 

What is technical analysis? 

• A market interpretation based on differences in countries’ interest rates
• The examination of measure a security's intrinsic value by examining related economic and financial factors, which can be both qualitative and quantitative in nature
• How you fundamentally feel about the market
• An evaluation of investments to identify trading opportunities by analysing statistical trends gathered from trading activity, such as price movement and volume

Technical analysis is the practice of examining an instrument's past movements on a graphical chart in an attempt to reveal price targets and important areas of pricing. Therefore, the answer to this question is “An evaluation of investments to identify trading opportunities by analysing statistical trends gathered from trading activity, such as price movement and volume. 

What is margin?

• The amount of money required for me to open a trade depending on my leverage
• The difference between the ask and the bid price
• The commission required for my trade
• All the above 

Margin is definitely not the difference between the ask and bid price, that is called the spread. And it is not the commission required to trade. What margin is is the funds needed in your account to open and maintain a leveraged position. Therefore, the answer is ‘The amount of money required for me to open a trade depending on my leverage ‘ 

What is fundamental analysis? 

• A market interpretation based on differences in countries’ interest rates
• The examination of measure a security's intrinsic value by examining related economic and financial factors, which can be both qualitative and quantitative in nature
• How you fundamentally feel about the market
• An evaluation of investments to identify trading opportunities by analysing statistical trends gathered from trading activity, such as price movement and volume

Fundamental analysis is the practice of examining an instrument according to economic and financial data such as a company’s quarterly earnings reports and forward-looking earnings forecasts. Therefore, the answer is “The examination of measure a security's intrinsic value by examining related economic and financial factors, which can be both qualitative and quantitative in nature“. 

What is a variable spread? 

• A spread that remains the same through the trading day
• A spread that changes through the trading day
• A spread that remains the same for 3 trading days in a week and then changes
• A spread that is permanently 1

A variable spread is constantly changing according to market conditions. Therefore, the answer is ‘A spread that changes through the trading day’ 

What is a Take Profit? 

• A type of order that specifies the price to close a position when in profit
• An order placed to ensure your position is closed when a certain price is reached. This will ensure your losses are within your risk tolerance
• An order placed at a random level to minimize my losses
• All the above 

A take-profit order is not an order to ensure your losses are within your risk tolerance. Nor is it placed randomly. A take profit is an order that specifies the price to close a position when in profit. 

What is a stop loss? 

• An order placed to ensure your position is closed when a certain price is reached. This will ensure your losses are within your risk tolerance
• An order placed to maximize your profits and ensuring your profits are within your risk tolerance
• An order placed at a random level to minimize my losses
• All the above 

A Stop loss is a directive or ‘order’ placed to ensure your position is closed when a certain price is reached. Is it placed to ensure that your losses are within your risk tolerance. It is not an order placed to maximize your profits nor is it placed randomly. 

What information does a Japanese candle stick give you? 

• The open, close, high, and low prices of a currency pair
• The projected high and low values for the currency pair during the time-period selected
• Time in Japan
• None of the above 

A Japanese candlestick consists of four main components. The top and bottom of the body and the end of the wicks. The top and bottom of the body represents the opening and closing price of an asset during a certain timeframe. While the end of the wicks represents the high and low price that asset achieved during that same period. Therefore, the answer is ‘The open, close, high, and low prices of a currency pair’. 

What factors cause metals volatility? 

• Economic Factors
• Political Factors
• All the above 

Volatility in metals can be caused by both Economic factors such as the strength of the US economy at any given point in time, as well as political factors, such as the changing of a major economy's government, among others, Therefore the answer to this question is ‘All the above’ 

What factors cause FX pairs price volatility? 

• Economic Factors
• Political Factors
• Central Bank intervention
• All the above 

The causes of a FX price volatility are numerous and include events such as Economic factors, political factors and Central bank intervention. Therefore, the answer to this question is ‘All the above’ 

What factors cause equity CFD’s volatility? 

• Earnings announcements
• Global economic news
• Political turmoil
• All the above 

The causes of an equity CFD volatility are numerous and include events such as Earning announcements, global economic news, and political turmoil. Therefore, the answer to this question is ‘All the above’ 

What factors cause energy volatility? 

• Political Instability
• Production costs and shortages
• Natural Disasters
• All of the above cause volatility 

Many factors can cause volatility in energy prices, including Political Instability, Production costs and shortages, and Natural Disasters, among other factors. Therefore, the answer to this question is ‘All of the above' 

What does bid price mean? 

• Price that buyers are willing to pay for an instrument
• Buy price from 1 year ago
• Average buy price
• Measure of stock dividend 

The bid price is the price that buyers have indicated that they are willing to pay for an instrument. It is the price they have “bid” for the asset. Therefore, the answer is the “Price that buyers are willing to pay for an instrument”. 

What causes prices to change? 

• Economic Factors
• Political Factors
• Central Bank intervention
• All the above 

The causes of a price change are numerous and include events such as Economic factors, political factors and Central bank intervention. Therefore, the answer to this question is ‘All the above’ 

What causes a spread to widen? 

• Market conditions
• The spread does not change
• It is random and means nothing
• None of the above 

Widening spreads are caused by market conditions such as low liquidity, or lopsided supply or demand. Spreads are not randomly determined and are subject to change. Therefore, the answer is “Market conditions”. 

To find the correct position sizing for EUR/AUD, for an account denominated in USD, you will need the conversion rate for which pair? 

• AUD/USD
• EUR/JPY
• EUR/USD
• No pair necessary 

Because the account is denominated in USD, you need the currency pair the uses the EUR/AUD’s ‘quote’ currency as the ‘base’ currency for any pair with USD as the base. Therefore, the pair you need is AUD/USD. 

The level of your take profit should be set: 

• At a random level
• According to my risk tolerance
• According to my gut feeling
• None of the above

Your take profit should not be set randomly or according to your gut feeling. Rather your stop loss should be set according to your trading strategy as informed by your risk tolerance.  Therefore, the answer is according to your risk tolerance.  

The difference between the bid and the ask is typically called the? 

• Spread
• Difference
• Dip
• None of the above 

In trading, the difference between the bid price, which is the price that buyers are willing to pay, and the ask price, which is the price sellers are willing to accept, is called the spread. 

In which of the following circumstances would you be unable to open a position of 1 lot on XAU USD?

• When the market is closed
• When I do not have enough margin in my account
• When I am getting 'Margin Called'
• All the above

If the markets are closed, you will not be able to open a trade of any size on any instrument. Likewise, if you are trading on leverage, you may not have the required margin in your trading account to open a position, or if you are receiving a margin call on an already open position. Therefore, the answer is ‘All the above’. 

In which of the following circumstances would you be unable to open a position of 1 lot on WTI? 

• When the market is closed
• When I do not have enough margin in my account
• When I am getting 'Margin Called'
• All the above

If you are not logged in to your account, you will not be able to open a trade of any size. Likewise, if you are trading on leverage, you may not have the required margin in your trading account to open a position, or if you are receiving a margin call on an already open position. Therefore, the answer is ‘All the above’. 

If you would like to keep your position open, and your margin level is currently at 100%, what should you do to ensure the position remains open?

• I should deposit more funds to ensure I do not get stopped out
• I should place another trade on a different pair to make a profit
• I should decrease my leverage on my account by emailing support@blackbullmarkets.com
• All the above 
  

To ensure your position remains open, it is imperative that you have enough funds in your account. Placing another trade will likely reduce your margin percentage further. Whereas decreasing leverage on an already open trade is not an option. Therefore, the answer is depositing more funds into your account is the correct answer.  

If you opened a trade and then immediately closed the trade at the same price, what might be the reason for not being in profit? 

• Commissions
• Spread Cost
• All the above 

Depending on your account type and the condition of the market at the time of the trade, the reason for the scenario laid out in the question could be due to any commission applied to your trades, or the costs associated with spreads. Therefore, the answer to this question is ‘All the above’. 

How much money can you lose? 

• I can lose only my profits
• I can lose all my capital, which may exceed the amount I invested
• I will not lose any money
• None of the above 

Trading is extremely risky, and caution must be taken because it is possible that you lose all your capital beyond your initial investment. Therefore, the answer to this question is “I can lose all my capital, which may exceed the amount I invested". 

How do you set a take profit in MT4/5? 

• I can edit the trade on desktop to set a Take Profit
• I can edit the trade on mobile to set a Take Profit
• I can drag the order up or down (depending on the buy or sell) to set the Take Profit
• All the above

Setting a take profit can be done multiple ways. It can be done via editing the trade on desktop and via mobile, as well as dragging the order line on the graph up or down. Therefore, the answer to this question is all the above. 

How do you set a stop loss level in MT4/5? 

• I can edit the trade to set a stop loss
• I can drag the order up or down (depending on the buy or sell) to set the Stop Loss
• All the above 

Setting a stop loss can be done multiple ways. It can be done via editing the trade via the trade window as well as dragging the order line on the graph up or down. Therefore, the answer to this question is all the above. 

How do you open a position on MT4/5?

• I can press the plus button on the trade screen
• Right-click anywhere within the Trade tab of the MT4/5 terminal and select New Order
• I can click the New Order button from the Toolbar section at the top of MT4/5
• All the above 

There are several ways to open a position on a Metatrader platform. You can either press the plus button on the trade screen, right-click anywhere with the trade tab and select new order, or click the new order button from the Tollbar section.

How do you determine the base currency? 

• The base currency is the first currency appearing in a currency pair quotation
• The base currency is the second currency appearing in a currency pair quotation
• I should guess the base currency and hope that I am correct
• There is no base currency

You can determine the base currency by noting the first currency in a currency pair becasue this is the base currency. So, in the pair GBP/USD, the base currency is GBP. 

Gold is typically considered a what type of asset? 

• A commodity 
• A forex pair
• An Energy
• An Equity CFD 

Gold is not a forex pair like EUR/USD. Gold is not an energy like Crude oil. And gold is not an equity CFD like APPLE stock. A commodity is a raw material or primary agricultural product that can be bought and sold. This is the perfect description for gold. Therefore, the answer to this question is ‘A commodity’. 

During which trading session will you experience the most volatility? 

• Likely during the New York Session
• Likely during the Sydney Session
• Likely during the London Session
• Likely during the Tokyo Session 

Any trading session can be volatile. But of the four trading session sessions, it is more likely that the New York session will be the most volatile as this is when most of the trading activity takes place. Therefore, New York is the answer. 

At what price will your stop loss be triggered and guarantee your positions will be closed? 

• At the price I specify
• At the price I specify, however I need to be careful when trading during volatile periods as I can experience slippage and gapping
• When I place a sell order and the price decreases
• When I place a buy order and the price increases 

A stop loss will trigger at the price that you specify, unless in the rare circumstances where volatility causes slippage and gapping, in this case, you stop loss order will be executed at the next best possible price. 

At what price is your sell trade executed? 

• The bid price
• The ask price 
• The difference between the ask and the bid price
• None of the above 

A sell trade is executed at top end of the bid/ask spread otherwise known as ‘the ask price’, whereas a buy trade is executed at bottom end of the bid/ask spread which is the bid price. Therefore, the answer to this question is ‘the ask price’. 

At what price is your buy trade executed? 

• The bid price
• The ask price
• The difference between the ask and the bid price
• None of the above 

A buy trade is executed at bottom end of the bid/ask spread otherwise known as ‘the bid price’, whereas a sell trade is executed at bottom end of the bid/ask spread which is the ask price. Therefore, the answer to this question is ‘the bid price’. 

At what point will you experience a margin call? 

• When your margin percentage reaches 200%
• When your margin percentage reaches 100%
• When your margin percentage reaches 70%
• Never
  
  

At BlackBull Markets, you will experience a margin call when your margin percentage reaches 70% so that you have fair warning to ensure you have enough funds in your trading account at all times. 100% and 200% are well above our margin call level. 

Assume your account is trading indices at 1:100 and your account is denominated in USD. You would like to open a position on the US30 for a short position of 10 lots when the price is 34750.00 What is the margin requirement you need to open a short position?

• 3475USD
• 300USD
• 10USD
• 5USD

To calculate your initial margin requirement, you can follow the equation: 

(lots x contract size) x market price / Leverage 

So, to work out initial margin, the calculation would be 

(10 x 1) x 34750 / 100 which equals 3475 

Therefore, the answer is 3,475 USD 

Assume your account is trading indices at 1:100 and your account is denominated in USD. You have opened a trade to sell 1 lot of US30, where the price is 34760. At which price would you have a loss of $20?

•  At price 34770
•  At price 34750
•  At price 34760
•  At price 34780

If you think about it, you do not have to do any complex calculation to answer this question. All you have to know is that you are only selling one lot, and that the original price is 34760. So, because you  have executed a sell order, if the price goes up, then you will be in negative. So to go into  negative by $20, the price will have to rise by this amount. Therefore, the answer is 34780.