1. A _________ is equal to 0.01 for exchange rates expressed to two decimal
places, or 0.0001 for exchange rates expressed to four decimal places.
2. A _________ is used by most forex brokers to close out an open position at
the end of the business day, and reopen an identical position as of the next day.
3. A carry trade is based on the interest rate differential between two
currencies. The idea is to hold _________ the currency with the higher interest rate, while
holding _________ a currency with a lower interest rate.
4. If you have positive carry, your position _________ money while it is
open, but if you have negative carry, you must _________ interest while the position is open.
5. "Trading on the technicals" refers to trading based on information derived
from _________. This is also known as technical analysis.
6. "Trading on the fundamentals" - or "trading the news" - describes traders
that attempt to predict the effect _________ such as interest rate changes and labor reports
will have on an exchange rate.
7. Fundamental analysis is the study of _________ in an attempt to predict
future market conditions.
8. A _________ order is executed immediately when submitted and is priced at
the current spot market rate.
9. A _________ order is an order to buy or sell a currency, but only when
certain conditions are met. These conditions are in the form of instructions and are attached
when the order is first created.
10. A limit order that has not yet been executed, is said to be _________.
