04 - Basic Computational Methods Flashcards
1
Q
USD/JPY
USD = base or quote currency?
A
Base
2
Q
1 pip =
A
0.0001
3
Q
How much is 1 basis point
A
0.01%
4
Q
How many basis points is 0.895%
A
89.5
5
Q
List the main 3 forex trading sizes
A
1 lot (100,000 currency pairs)
1 mini lot (10,000)
1 micro lot (1,000)
6
Q
You _______ a countries interest on a short and ________ interest on a long
A
Pay and receive
7
Q
Currency you’re going short is a liability or an asset?
A
Liability, you are paying interest to that country
8
Q
Currency you’re going long is an asset or liability?
A
Asset, you’re receiving payments in interest
9
Q
What is the difference between the interest you are paying in the short and the interest you are receiving in the long called?
A
Carry
10
Q
What is rollover?
A
Daily interest that you pay or receive
