Scalping quiz · TradeBridge IB

1.A scalping trade has a 5-pip target and a total cost of 1.7 pips. What share of the target do costs take?

1.7%17%3.3%34%

2.On EUR/USD, 1 pip on 1 standard lot is worth 10 USD. How many pips is a commission of 7 USD per lot round turn?

0.07 pips0.7 pips7 pips1.4 pips

3.With a 5-pip target, a 5-pip stop and 1.7 pips of cost per trade, what win rate is needed to break even?

50%55%67%83%

4.When are spreads on major pairs usually at their tightest?

During the London–New York overlapAround the daily rolloverIn the minutes before a central bank decisionAt the weekly open on Sunday evening

5.Around what time is the daily forex rollover commonly applied?

5pm New York time9am London timeMidnight Tokyo timeNoon UK time

6.What is the main drawback of a limit order?

It always fills at a worse price than requestedIt cannot be used to enter a tradeIt may not be filled at allIt turns into a market order as soon as it is placed

7.You risk 25 USD per trade with a 5-pip stop and 1.7 pips of cost on EUR/USD (10 USD per pip per lot). Sizing on stop plus costs and rounding down, what size do you trade?

0.5 lots0.37 lots0.25 lots0.67 lots

8.Why might a scalping strategy that is profitable on demo struggle on a live account?

Live accounts do not allow stop-loss ordersLive accounts have no spreadDemo accounts charge higher commissionDemo fills can be cleaner than live fills, and emotions differ with real money