1. Why does forex trade nearly continuously across a 24-hour cycle?
Because a single global exchange never closes Because it is a chain of overlapping regional sessions rather than one central exchange Because central banks require continuous quoting Because forex brokers are legally required to stay open
2. What is the primary fundamental driver behind most sustained currency pair trends?
The absolute level of a country's stock market Interest-rate differentials between the two countries in the pair The color of the central bank's logo Daily trading volume alone
3. Compared to major forex pairs, exotic pairs typically have:
Tighter spreads and deeper liquidity Wider spreads, thinner liquidity, and higher gap risk No correlation to the US dollar Guaranteed lower volatility
4. Gold tends to become more attractive to hold when:
Real yields rise sharply Real yields fall, lowering the opportunity cost of holding a non-yielding asset The US dollar strengthens broadly Inflation expectations disappear entirely
5. Gold's relationship with the US dollar is best described as:
Perfectly correlated in the same direction Generally inverse, since gold is priced in dollars Completely unrelated Only relevant during weekends
6. Why can a single large company's earnings report move an entire cap-weighted index?
All index constituents are required to report the same day The largest constituents can represent a disproportionate share of the index's weighting Indices are equally weighted across all members Index prices are set manually by exchanges
7. Liquidity in index trading is generally weakest during:
The middle of the regular cash session Pre-market and after-hours windows The opening minute of the cash session Liquidity never varies for indices
8. Indices commonly show a strong inverse relationship with which of the following?
A volatility index The price of gold The WTI-Brent spread Weekly crude oil inventories
9. What makes crypto markets structurally different from forex in terms of trading time?
Crypto has defined regional sessions like forex Crypto trades 24/7 with no weekend close, unlike forex's 24/5 schedule Crypto only trades during North American hours Crypto and forex have identical trading calendars
10. In crypto markets, price action is disproportionately influenced by:
Quarterly earnings reports OPEC+ production quotas Sentiment, narrative, and news flow rather than standardized fundamentals Weekly inventory draws
11. A key risk management adjustment needed when moving from forex to crypto is:
Using identical stop distances since volatility is the same Widening position-sizing and stop assumptions to reflect crypto's typically higher volatility Removing stops entirely since crypto never gaps Ignoring correlation between coins
12. Sector rotation refers to:
Companies changing their stock ticker symbols Capital shifting between sectors as economic cycle expectations change Exchanges rotating which stocks are listed A type of technical indicator
13. Why can after-hours stock price moves following an earnings release be misleading?
After-hours trading has deeper liquidity than the regular session Thin after-hours liquidity can exaggerate moves that partially reverse once full trading resumes After-hours prices are not real trades Earnings are never released after market close
14. The main practical difference between WTI and Brent crude is:
WTI is only traded on weekends They are different regional benchmarks with different sourcing, and their price gap reflects regional supply pressure Brent is not a real tradable benchmark There is no difference at all
15. A larger-than-expected build in weekly oil inventory reports typically:
Has no effect on price Tends to pressure oil prices lower Guarantees an OPEC+ emergency meeting Always causes prices to spike higher
16. This module's overall approach differs from earlier strategy modules because it:
Introduces entirely new indicators unrelated to prior material Applies previously taught concepts like technical analysis, fundamentals, risk management, and correlation to specific asset classes Replaces risk management with asset-specific rules Focuses only on backtesting methods