Final Primary School Test
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Question 1 |
What is hedging?
From the Article Hedging With Binary One Touch Options – Trading on Weekends
A | Hedging is a technique and strategy that traders use to offset potential losses |
B | It’s something similar to a hedgehog |
C | I don’t know because I was told Binaries are easy and this sounds complicated |
D | Hedging is a technique for increasing the profits of the trades |
Question 2 |
Why do brokers ask for personal identification documents?
From the Article Trader’s Tales – The Broker that Saved my Day
A | They want to sell my personal information to advertising companies Hint: Haha, funny guy! Nope... |
B | To prevent money laundering or depositing with a stolen credit card or any other sort of money related fraud Hint: Nailed it! |
C | They wanna know where I live and come steal my TV…it’s 3D Hint: I am sure brokers can afford the new 4D TV’s so relax. |
D | I don’t know, I don’t care but it annoys the crap out of me Hint: Come on now don’t be like that, try again! |
Question 3 |
Fill in the missing word: “The trend is your….”
From the Article Binary Options: Basics, Charting and Analyzing
A | Master |
B | Precious…my precious… |
C | What is this “Trend” you keep talking about??? |
D | Friend Hint: Almost there, 9 more questions to go! |
Question 4 |
What are the strengths of this strategy?
From the Article Picking Tops and Bottoms on Bollinger Bands© For Binary Options Trading
A | It uses a higher time frame to identify the main trend |
B | It uses Bollinger Bands which is quite a reliable tool |
C | It relies on Martingale and we know that Martingale is a money maker |
D | Both a. and b. are true |
Question 5 |
Is hedging used for increasing profits or decreasing risk?
From the Article Binary Options Hedging Explained – Profit Slowly but Safe
A | Increasing both risk and profits |
B | Decreasing risk |
C | It is used by traders who don’t know what a Binary Option is but still invest in them |
Question 6 |
Name a trusted, reliable source of information and also unbiased reviews
From the article: Recommended Forex/Binary Options Reviews Websites
A | ForexPeaceArmy.com |
B | BOTS.com |
C | All |
D | Complaints.com |
Question 7 |
What are the main differences between the computer platform and the mobile one?
From the Article Binary Options Mobile Trading – The Freedom to Trade Everywhere
A | The mobile platform has a smaller size Hint: Partially true, read all answers first! |
B | The mobile platform has less features than the computer platform Hint: Partially true, there are multiple answers for this one! |
C | Both a. and b. are true Hint: Exactly, smaller and less features are correct. |
D | The mobile platform has a lower spread Hint: Nothing to do with spreads, try again, features? Size? |
Question 8 |
What is Roll Over?
From the article: Risk Management Tips in Binary Options Trading
A | Allows you to postpone your expiry |
B | A situation in which traders roll over on the ground after a losing streak |
C | Risky trading method |
D | Closing your trade before your expiry |
Question 9 |
The best Binary Options Brokers…
From the article: Even the Best Companies in the World Suck Sometimes
A | Suck sometimes Hint: Let me know if you find one though! |
B | Are scammers Hint: Nope… Guess again, free your mind Neo… or something. |
C | Have account managers Hint: Wonderful, maybe you should be teaching traders soon? |
D | Are simply flawless Hint: Haha, I think you just defined what oxymoron means! |
Question 10 |
Why is regulation of the broker an advantage for me?
From the article Binary Options Regulation
A | Regulated brokers provides the best quotes to their clients |
B | When a broker is regulated, the deposited money is kept in a separate account and monitored by a third party to ensure fair-play. The client’s money is not “mixed” with the broker’s money. |
C | Regulated brokers fill quarterly financial statements and will not announce bankruptcy in any case |
D | Regulated brokers are under direct observation of FBI and other security services |
Question 11 |
What documents are requested from you by your broker in order to complete a withdrawal?
From the Article Top 5 Binary Options Beginner Tips
A | Official ID with photo Hint: You got ¼ right. |
B | Proof of address Hint: Partially true, did you read all of the answers? |
C | If you deposited via credit card: front and back copies of that credit card showing only the last 4 digits Hint: Good, but come one, read all the answers first! |
D | All of the above Hint: You are ready to trade my friend! |
Question 12 |
When you receive a deposit bonus from your broker, can you withdraw it after a few trades?
From the Article 5 Important Tips for Beginners – How to stay Safe and Benefit from Binary Options
A | No, you have to meet some requirements before you can withdraw (usually there is a minimum number of trades and a certain trading volume that have to be reached before withdrawal) Hint: I see you have read your Terms & Conditions! Keep it up! |
B | Yes, you could withdraw whenever you want Hint: Not true, maybe you should read the article again? |
C | You couldn’t withdraw this bonus. It is only for trading. You could withdraw only profits. Hint: Not true, maybe you should read the article again? |
D | You could withdraw only if you are a VIP client of the broker Hint: Yeah just like that, and you get a Lamborghini too. |
Question 13 |
How should you choose a Binary Options broker?
From the Article How to choose your Binary Options Broker?
A | Search Google and deposit with the first broker that appears in the list Hint: Error, does not compute, my head explodes. |
B | Do extensive research on several brokers. Fortunately, we did most of the hard work and you can find on BOTS.com all the important stuff about the most prominent brokers in the business today Hint: Awesome, you’re doing well, let’s continue. |
C | Live chat with every single broker and select the one with best support Hint: Wow you have so much free time! |
D | Chose the one with the biggest bonus Hint: Error, does not compute, my head explodes. |
Question 14 |
What would be considered an appropriate risk percentage for this strategy?
From the Article Swing to 15 Minute Technicals: 15 Minutes Binary Options Trading Strategy
A | Anywhere between 1% - 100% of the entire account |
B | 37.6% of my entire account |
C | Somewhere in the range of 3-5% depending on skill level |
Question 15 |
How much do you have to pay for Meta Trader 4 platform?
From the Article MetaTrader4 – The MUST have charting software
A | It is free! |
B | It’s priceless but you actually have to pay 100 bucks to use it for 13 days |
C | It depends on the broker you chose |
D | It costs about 300$ per year |
Question 16 |
Why should we buy low and sell high?
From the Article Risk Management Tips in Binary Options Trading
A | Because if we buy assets at lower prices, there is a decreased likelihood that prices will fall further. |
B | Because if we sell assets at higher prices, there is a decreased likelihood that prices will rise further. |
C | Both A and C are true |
D | Because it’s similar to a discount price and I should by more when there’s a discount |
Question 17 |
What is Early Exit?
From the article: Risk Management Tips in Binary Options Trading
A | Strategy used for entering trades fast and repeatedly Hint: We are talking Exits, not entries! |
B | Strategy used to find exit points earlier Hint: Getting warmer, try again! |
C | A feature that allows you to close your trade before it reaches expiration |
D | A feature that allows you to take profit or cut your losses short before expiration Hint: Cutting losses, now that’s a good feature. |
Question 18 |
What is the purpose of all those lines on the chart?
From the Article Rainbow Madness – Looking for the Leprechaun’s Pot of Gold
A | To confuse the trader. |
B | To cover the fact that I actually have no idea about how to trade |
C | Once the lines are arranged in a certain way, a trend is in place. So they help me see this trend. |
D | To predict exactly the next market movement |
Question 19 |
What is the expiry for a 60 second Binary Option?
From the Article 6 Opinions, 60 Seconds – Expert Traders on 60 Seconds Options
A | 60 seconds from the time when I placed the trade |
B | 60 seconds before the end of the day |
C | 60 seconds after all my other options expire |
D | Could you stop with all the questions? What are you, The Police? |
Question 20 |
Can I adjust my Risk/Reward ratio with the Option Builder Tool?
From the Article The Option Builder Tool for Binary Options Trading – Not What It’s Cracked Up To Be
A | Nope, Binary Options have fixed Risk and Reward |
B | Yes, you can. |
C | Why build Options when the Broker already did that for you… |
D | You can only adjust the Risk, not the Reward |
Question 21 |
What is a Mobile Binary Options platform?
From the Article Binary Options Mobile Trading – The Freedom to Trade Everywhere
A | Every Binary Options platform is mobile because I can move my monitor Hint: Maybe you should become a comedian instead? |
B | I have a laptop. I am mobile and that means my platform is too Hint: Maybe you should become a comedian instead? |
C | A simplified version of a broker’s platform, available on your smart phone or tablet Hint: Wise guy huh? |
D | Huh..?! Hint: What, need a dictionary? |
Question 22 |
What’s the Geek’s first step in managing risk?
From the Article The Geek Reveals: How I Manage My Risk in 3 Steps
A | Never invest in the first place Hint: Then what are you doing here? |
B | I don’t know, I’m not a geek…I’m cool Hint: It’s cool to know things too! |
C | First step is to get the right education Hint: Correct! You seem quite educated already =)! |
D | He always carries a weapon to protect himself Hint: That might be legal in some states but it won’t help you manage funds. |
Question 23 |
Why do Binary Options brokers request documents in order for me to withdraw funds?
From the Article Easy to Deposit, Harder to Withdraw. Why?
A | Because they want to know who you are and what are your financial possibilities |
B | Because brokers want to steal money from you |
C | Because it is required by law, to prevent money laundering |
D | Because they must send this information to FBI |
Question 24 |
You should always trade when you are…?
From the article: Trader’s Tales – Igor the (Occasionally Drunk) Shark
A | Sober and focused |
B | As drunk as Jackie Chan in the movie “Drunken Master” |
C | Drinking wine rather than vodka |
D | Receiving signals from your Signal Service Provider |
Question 25 |
You can manage your risks in the following 3 steps:
From the article: How I Manage My Risk in 3 Steps
A | Signing up with a trusted Signal Service Provider, learning from a Guru and following your account managers tips Hint: If you are serious you really need to go back to school, I am worried for you! |
B | What risks? I’m going to make 500$ per hour! Hint: Guessing won’t make a trader out of ya! |
C | Correct education, Small investments and a trustworthy strategy that you’re confident in using Hint: And you my friend are ready to begin trading =) |
D | Make the minimum deposit, guess the direction of the trend and start trading Hint: Hehehe, ok, don’t forget to share then. |
Question 26 |
Why it is better to deposit $250 than $100?
From the Article Opening a Binary Options Account – How Much to Deposit?
A | Because you will make big money with bigger deposit Hint: That wasn’t the point here… |
B | Because the broker will give you secret instruments to play better if you deposit more Hint: pffft… They will also dance for you. |
C | Because a bigger first deposit allows the trader to apply risk management techniques. An account with $100 is blown after 4 losses (assuming that the minimum trade allowed is $25) Hint: Correct, Save up for a bigger deposit! |
D | Because the statistical fluctuations of the price depend on the deposit size Hint: Trying to sound smart? |
Question 27 |
Before trading, it’s recommended to have and prepare the following:
From the article: Preparing yourself for Trading Binary Options
A | Get greedy and go all in so you can make as much money as possible during the trading session Hint: No, you wouldn’t even do that in a casino! |
B | Good internet access, having available snacks and beverages and enough rest Hint: That’s right, so long as it’s non-alcoholic beverages. |
C | Ignore that news is getting released and keep trading Hint: That’s one way of shooting yourself in the foot. |
D | Opening up lots of unnecessary programs on the PC Hint: No… You don’t always have to download porn while your trading. |
Question 28 |
When investing in Binary Options you should
From the Article My first Binary Options Deposit, Real Trading Experiences Series Part 2 – The Nice Guy
A | Never look on graphics of the traded Hint: You know you can always go back to the school right? |
B | Sell everything you have and invest it all so you can win more Hint: You know you can always go back to the school right? |
C | Only invest money that you can afford to lose Hint: Hurray! You made it till the end! Do the next test when you feel ready. |
D | Make a mortgage of your house and trade the money Hint: You know you can always go back to the school right? |
Question 29 |
Is it better to trade for extended periods of time with no sleep or just a few hours every day?
From the Article Preparing yourself for Trading Binary Options
A | A few hours and then get some rest Hint: Yep! Rest and snacks, don’t forget snacks! |
B | Trade non-stop to become rich very soon Hint: We know how that will end… overtrading and balances next to zero. |
C | Depends on the psychic condition of the person Hint: Lots of cardio huh? You need to rest! |
D | Trade non-stop to master the game Hint: Reminds me of those non-stop video gamers that end up dead in a cafeteria |
Question 30 |
Are the “Terms and Conditions” important to read or just some legal stuff that doesn’t interest you?
From the article Binary Options Terms and Conditions
A | The “Terms and Conditions” section contains very important pieces of information related to (but not limited to) deposit and withdrawal, canceling a withdrawal, minimum trade amount or bonus conditions. |
B | The “Terms and Conditions” section contains only bullshit. You don’t have to read them |
C | The “Terms and Conditions” section contain purely legal and uninteresting stuff for you |
D | I won’t waste my time reading this information |
Question 31 |
Why do you need a charting package like Meta Trader 4?
From the Article MetaTrader4 – The MUST have charting software
A | I don’t need it; stop telling me that I do. I just gamble with Calls and Puts and I don’t care about any market analysis. |
B | Because it allows greater trade execution than other binary options platforms |
C | Because it gives better look of your trading screens |
D | Because technical analysis is a very important part of trading and it cannot be conducted on the charts provided by Binary Options platforms. MT4 is very appropriate for technical analysis. |
Question 32 |
What is a financial chart?
From the Article Binary Options: Basics, Charting and Analyzing
A | A classification of the best music singles over a predefined period of time Hint: This isn’t Spotify, we are talking candlesticks, think assets! |
B | A graphic representation of an asset’s performance during a predefined period of time Hint: Yes! Looks like we have a financial advisor here. |
C | That thing you keep telling me to analyze Hint: And does it illustrate a performance of any kind? |
D | Wait, you are talking about that curved line that brokers show me on the platform? Hint: Or on MetaTrader or any other charting software, what do they represent? |
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