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Question 1 of 5

Which of the following elements can you control when you’re trading? (Select all that apply)

Please select all answers that apply
  • When you’re going to exit the trade
  • The way the market moves
  • How much risk you’re going to expose yourself to
  • When you’ll enter the trade

Explanation

You can’t control how markets will move, or whether you’ll win each trade you place. But by defining how much risk you want to take, and where you’ll enter and exit each trade, you can control how much you stand to win or lose on each trade.

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Question 2 of 5

If you have a tendency to snatch profits, your win rate might be relatively high. However, you can’t view your win rate in isolation, what else should you consider?

  • A Profit-to-loss ratio
  • B Loss rate
  • C Total returns

Explanation

Your profit-to-loss ratio gives you a clear idea of how much you’re winning when you trade vs how much you’re losing. You shouldn’t rely solely on your win rate as it only takes into account volume of trades, rather than value of trades – meaning you can have a low win rate and still be trading profitably.

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Question 3 of 5

If you want to remove the temptation of running losses and snatching profits, which of the following is the most important to define?

  • A When you’ll enter a trade
  • B When you’ll exit a trade

Explanation

Establishing the level at which you’ll exit a trade, whether it’s in profit or loss, is key to adding discipline to your trading. By doing this you can remove the temptation to let losing positions run or to close winning positions too early.

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Question 4 of 5

Where can you set stops and limits in the platform?

  • A Directly in the deal ticket
  • B In the positions panel
  • C Both of the above

Explanation

You can set stops and limits directly in the deal ticket when you’re opening a position, or you can add them to existing positions by clicking on the ‘positions’ tab on the left-hand menu.

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Question 5 of 5

You’re placing a trade on EUR/USD, and want to plan your exit to limit the temptation to snatch a profit or run a loss. How might you check in our platform to see if there are any upcoming events that could impact the market, and help you determine where you set your stops and limits? (Select all that apply)

Please select all answers that apply
  • Economic calendar
  • News & analysis
  • Trading alerts
  • Trading signals

Explanation

The economic calendar is a useful tool to see if there are any set announcements or events coming up which could impact EUR/USD. You can use the news & analysis resources to research how these scheduled events might have impacted the market in the past, and how commentators think they might impact the market in the future.

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