What Is CFD Trading?

In CFD trading, traders can earn from speculating on the price movements of the underlying assets without actually owning them.

• Question 01

  What is the primary goal of momentum trading in CFD trading?

  Your Answer

  • A.Guaranteeing profits

  • B.Minimizing transaction costs

  • C.Taking advantage of price trends for profit

  • D.Ignoring market conditions

• Question 01

  What is the potential risk associated with momentum trading in CFDs?

  Your Answer

  • A.Guaranteed profits

  • B.Low volatility

  • C.Quick and unpredictable changes in market trends

  • D.Stable market conditions

• Question 01

  How does range trading differ from other CFD trading strategies?

  Your Answer

  • A.It guarantees profits

  • B.It involves buying and selling within a well-defined price range

  • C.It ignores market conditions

  • D.It relies solely on news events

• Question 01

  What is the basis of the news trading strategy in CFD trading?

  Your Answer

  • A.Ignoring market conditions

  • B.Relying solely on technical analysis

  • C.Using news events to make trading decisions

  • D.Minimizing the need for risk management

• Question 01

  What must traders be aware of when using the news trading strategy?

  Your Answer

  • A.Low market volatility

  • B.The risk of high market volatility after major news events

  • C.Guaranteed profits

  • D.Ignoring economic calendars

• Question 01

  What is the primary objective of scalping in CFD trading?

  Your Answer

  • A.Maximizing transaction costs

  • B.Accumulating many small profits from frequent trades

  • C.Ignoring market conditions

  • D.Relying solely on fundamental analysis

• Question 01

  What is crucial for CFD traders using the scalping strategy?

  Your Answer

  • A.Ignoring market conditions

  • B.Constantly monitoring the markets and making quick decisions

  • C.Reliance on long holding periods

  • D.Ignoring risk management techniques

• Question 01

  What is a key characteristic of breakout trading in CFD trading?

  Your Answer

  • A.Accumulating small profits over a long period

  • B.Identifying key levels of support and resistance

  • C.Ignoring technical analysis

  • D.Guaranteeing profits

• Question 01

  How does the breakout trading strategy involve key levels of support and resistance?

  Your Answer

  • A.By ignoring them

  • B.By guaranteeing profits

  • C.By relying solely on economic calendars

  • D.By identifying where a security or market is poised for a significant move