Swing trading quiz · TradeBridge IB

1.What is the typical holding period for a swing trade?

Seconds to minutesMinutes to a few hours, closed before the session endsDays to a few weeksSeveral months to years

2.A trader with 100 USD of risk uses an 80-pip stop on EUR/USD, where 1 pip on 1 standard lot is 10 USD. What is the exact position size before rounding?

0.125 lots0.8 lots1.25 lots0.08 lots

3.In top-down analysis, what is the main job of the daily chart for a swing trader?

Deciding the long-term direction of the marketTiming the exact entry candleCalculating swap costsFinding a sensible location to trade from, such as a pullback zone

4.When the weekly and 4-hour charts disagree, which should normally take priority?

The 4-hour chart, because it is more recentThe weekly chart, because the higher timeframe has priorityWhichever supports the trade you want to takeNeither; use a 1-minute chart to decide

5.You close half a position at 1R and move the stop to entry. Price then falls back to your original stop. Ignoring costs, what is the overall result?

Minus 1RPlus 0.5RZeroPlus 1R

6.Why is a 'break-even' stop on a long position usually a small loss in practice?

Because swap is always charged when a stop is hitBecause brokers move stops away from entryBecause break-even stops can only be placed on the weekly chartBecause the stop is triggered by the bid, so the spread and any commission are still paid

7.What two parts make up the swap on a forex position?

The interest-rate differential between the currencies and the broker's markupThe spread and the commissionThe margin requirement and the leverage ratioThe weekend gap and the stop-loss distance

8.A long position has a 50-pip stop, but the market reopens on Monday 100 pips below the entry. What usually happens?

The stop fills exactly at its level, so the loss is as plannedThe position is cancelled with no lossThe stop fills at or near the opening price, so the loss is larger than plannedThe broker reopens the market at Friday's closing price