Forex Services – Forex Trading, Currency Exchange, Hedging and Risk Management

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What is the primary purpose of hedging in forex trading?

To maximize profits

To speculate on currency fluctuations

To reduce the risk of adverse currency movements

To avoid paying transaction fees

Which of the following is a commonly used financial instrument for hedging foreign exchange risk?

Equity Futures

Forward Contracts

Government Bonds

Exchange-Traded Funds

What does the term "currency pair" mean in forex trading?

A combination of two countries involved in trade

The ratio of two interest rates

A quotation of two currencies traded in the forex market

A set of exchange rates offered by a broker

Which of the following is the largest and most liquid financial market in the world?

Stock Market

Commodity Market

Forex Market

Bond Market

Which term refers to the difference between the bid price and the ask price in forex trading?

Leverage

Margin

Spread

Pip