Question 1

What is Fundamental Analysis focused on?

Accepted Answer

A company's financial health, earnings, and industry trends.

Answer

Price charts and patterns

Answer

Technical indicators

Answer

Liquidity measures

Question 2

What does liquidity measure in trading?

Accepted Answer

How quickly an asset can be bought or sold without affecting its price.

Answer

The highest price a seller will accept

Answer

The difference between bid and ask prices

Answer

The total number of shares traded

Question 3

What is the bid-ask spread?

Accepted Answer

The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

Answer

The price at which a trade is executed

Answer

The current market price of an asset

Answer

The total volume of shares traded

Question 4

What role does volume play in trading decisions?

Accepted Answer

Volume indicates the number of shares or contracts traded.

Answer

It shows the current price of an asset

Answer

It measures the liquidity of a market

Answer

It reflects market order types

Question 5

What is a Market Order?

Accepted Answer

Executes immediately at the current price.

Answer

Is only good for a limited time

Answer

Executes only at a specified price

Answer

Can be canceled at any time

Question 6

What is a Limit Order?

Accepted Answer

Executes only at a specified price or better.

Answer

Executes at the current price

Answer

Is canceled if not executed immediately

Answer

Is only used during high volatility

Question 7

Why is high liquidity important in trading?

Accepted Answer

It reduces transaction costs and improves execution.

Answer

It decreases market volatility

Answer

It limits the number of trades

Answer

It increases the bid-ask spread

Question 8

What does Technical Analysis focus on?

Accepted Answer

Price charts, patterns, and indicators to predict future movements.

Answer

The macroeconomic environment

Answer

The bid-ask spread

Answer

A company's earnings and financial health

Question 9

What indicates higher liquidity in terms of bid-ask spread?

Accepted Answer

A smaller spread.

Answer

Constant price fluctuations

Answer

Higher trading volume

Answer

A larger spread

Question 10

What can low volume in the market indicate?

Accepted Answer

Weakness or indecision.

Answer

High liquidity

Answer

Strong market trends

Answer

A large number of trades

Related quizzes

Related quizzes