FOREX Advantages of Technical Analysis

• time series
• weighed
• triangular
• variable
• volume adjusted

The only significant difference between the various types of moving averages is the weight assigned to the most recent data. For example, a simple (arithmetic) moving average is calculated by adding the closing price of the instrument for a number of time periods, then dividing this total by the number of time periods.

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the instrument’s closing price, and the instrument’s closing price itself.

• Sell signal: when the instrument’s price falls below its moving average

• Buy signal: when the instrument’s price rises above its moving average

The other technique is called the double crossover, which uses short-term and long-term averages. Typically, upward momentum is confirmed when a short-term average (e.g., 15-day) crosses above a longer-term average (e.g., 50-day). Downward momentum is confirmed when a short-term average crosses below a long-term average.

MACD - Moving Average Convergence/Divergence - a technical indicator, developed by Gerald Appel, used to detect swings in the price of financial instruments. The MACD is computed using two exponentially smoothed moving averages (see further down) of the security's historical price, and is usually shown over a period of time on a chart. By then comparing the MACD to its own moving average (usually called the "signal line"), traders believe they can detect when

Support / Resistance

Bollinger Bands are one of the most popular technical analysis techniques. The closer prices move to the upper band, the more overbought is the market, and the closer prices move to the lower band, the more oversold is the market.

• Support / Resistance – The Support level is the lowest price an instrument trades at over a period of time. The longer the price stays at a particular level, the stronger the support at that level. On the chart this is price level under the market where buying interest is sufficiently strong to overcome selling pressure. Some traders believe that the stronger the support at a given level, the less likely it will break below that level in the future. The Resistance level is a price at which an instrument or market can trade, but which it cannot exceed, for a certain period of time. On the chart this is a price level over the market where selling pressure overcomes buying pressure, and a price advance is turned back.

• Support / Resistance Breakout - when a price passes through and stays beyond an area of support or resistance.

CCI - Commodity Channel Index - an oscillator used to help determine when an investment instrument has been overbought and oversold. The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average. The CCI has seen substantial growth in popularity amongst technical investors; today's traders often use the indicator to determine cyclical trends in equities and currencies as well as commodities.

The CCI, when used in conjunction with other oscillators, can be a valuable tool to identify potential peaks and valleys in the asset's price, and thus provide investors with reasonable evidence to estimate changes in the direction of price movement of the asset.

• Hikkake Pattern – a method of identifying reversals and continuation patterns. Used for determining market turning-points and continuations (also known as trending behavior). It is a simple pattern that can be viewed in market price data, using traditional bar charts, or Japanese candlestick charts.

• Moving averages - are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or “noise”, that can confuse interpretation. There are seven different types of moving averages:

• simple (arithmetic)

• exponential

Forex Various techniques and terms

Various techniques and terms

Many different techniques and indicators can be used to follow and predict trends in markets. The objective is to predict the major components of the trend: its direction, its level and the timing. Some of the most widely known include:

• Bollinger Bands - a range of price volatility named after John Bollinger, who invented them in the 1980s. They evolved from the concept of trading bands, and can be used to measure the relative height or depth of price. A band is plotted two standard deviations away from a simple moving average. As standard deviation is a measure of volatility, Bollinger Bands adjust themselves to market conditions. When the markets become more volatile, the bands widen (move further away from the average), and during less volatile periods, the bands contract (move closer to the average).

FOREX Advantages of Technical Analysis

The use of most patterns has been widely publicized in the last several years. Many traders are quite familiar with these patterns and often act on them in concern. This creates a self-fulfilling prophecy, as waves of buying or selling are created in response to “bullish” or “bearish” patterns.

Advantages of Technical Analysis

• Technical analysis can be used to project movements of any asset (which is priced under demand/supply forces) available for trade in the capital market;

• Technical analysis focuses on what is happening, as opposed to what has previously happened, and is therefore valid at any price level;

• The technical approach concentrates on prices, which neutralizes external factors. Pure technical analysis is based on objective tools (charts, tables) while disregarding emotions and other factors;

• Signaling indicators sometimes point to the imminent end of a trend, before it shows in the actual market. Accordingly, the trader can maintain profit or minimize losses.

Forex Technical analysis

Technical analysis

Technical analysis is a method of predicting price movements and future market trends by studying what has occurred in the past using charts. Technical analysis is concerned with what has actually happened in the market, rather than what should happen, and takes into account the price of instruments and the volume of trading, and creates charts from that data as a primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously.

Technical analysis is built on three essential principles:

1. Market action discounts everything! This means that the actual price is a reflection of everything that is known to the market that could affect it. Some of these factors are: fundamentals (inflation, interest rates, etc.), supply and demand, political factors and market sentiment. However, the pure technical analyst is only concerned with price movements, not with the reasons for any changes.

2. Prices move in trends. Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many given patterns there is a high probability that they will produce the expected results. There are also recognized patterns that repeat themselves on a consistent basis.

3. History repeats itself. Forex chart patterns have been recognized and categorized for over 100 years, and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time. Since patterns have worked well in the past, it is assumed that they will continue to work well into the future.

Disadvantages of Technical Analysis

• Some critics claim that the Dow approach (“prices are not random”) is quite weak, since today’s prices do not necessarily project future prices;

• The critics claim that signals about the changing of a trend appear too late, often after the change had already taken place. Therefore, traders who rely on technical analysis react too late, hence losing about 1/3 of the fluctuations;

• Analysis made in short time intervals may be exposed to “noise”, and may result in a misreading of market directions;

Basic Forex forecast methods:

In this chapter…
The categories and approaches in Forex Technical Analysis all aim to support the investor in determining his/her views and forecasts regarding the exchange rates of currency pairs. This chapter describes the approaches, methods and tools used to this end. However, this chapter does not intend to provide a comprehensive and/or professional level of knowledge and skill, but rather let the reader become familiar with the terms and tools used by technical analysts.
As there are many ways to categorize the tools available, the description of tools in this chapter may sometimes seem repetitive. The sections in this chapter are:
[6.1] Technical Analysis: background, advantages, disadvantages;
[6.2] Various techniques and terms;

[6.3] Charts and diagrams;
[6.4] Technical Analysis categories / approaches:
a. Price indicators;
b. Number theory;
c. Waves;
d. Gaps;
e. Trends;
[6.5] Some other popular tools.
[6.6] Another way to categorize Technical Indicators.

Another way to categorize Technical Indicators.

3. History repeats itself.

Forex chart patterns have been recognized and categorized for over 100 years, and the manner in which many patterns are repeated leads to the conclusion that human psychology changes little over time. Since patterns have worked well in the past, it is assumed that they will continue to work well into the future.

Technical Analysis:

This chapter and the next one provide insight into the two major methods of analysis used to forecast the behavior of the Forex market. Technical analysis and fundamental analysis differ greatly, but both can be useful forecasting tools for the Forex trader. They have the same goal - to predict a price or movement. The technician studies the effects, while the fundamentalist studies the causes of market movements. Many successful traders combine a mixture of both approaches for superior results.

Easy-Forex

Easy-Forex™ does not offer "demo" accounts. Coming to understand that reason must rule over emotion is the most important lesson a trader can learn, and it cannot be done with play money. If there is no consequence to indulging in emotional responses to the market, there is no learning, so "demo" accounts tend to have little educational value. Rather, Easy-Forex™ allows you to start trading with just $50, including full access to one-on-one training. New registrants are thus able to garner both an educational and experiential benefit unavailable through simulated situations.

Training for success

Easy-Forex™ offers one of the most effective forms of training through hands-on experience. For as little as USD 25 at risk per trade, you can start trading while learning in real-time. Easy-Forex™ strongly recommends starting with very small volumes, and depositing an amount to cover a series of trades. Learn the basics of the foreign exchange market, trading terminology, advanced technical analysis, and how to develop successful trading strategies. Discover how the Forex market offers more opportunities for quick financial gains than almost any other market.

There are many kinds of charts (see Chapter 6, Technical Analysis). Start with simple charts. Try to identify trends and major changes, and try to relate them to technical patterns as well as to macro events (news, either financial

Read daily/weekly outlooks posted on Forex or general financial sites. Many include alerts to upcoming reports and events such as market indicators and interest rate decisions.

Don’t hesitate to browse Forex glossaries, which are offered free on many platforms. A given word may have different meaning as it relates to Forex and to the terminology used by the Forex market participants.

Visit and participate in Forex forums. This gives you an opportunity to learn from the experience of others. Of course, remember that some forum participants may be biased, promoting a given Forex platform or their own agenda.

Trading via brokers and dealing rooms (by phone)

Trading via brokers and dealing rooms (by phone)

Performing Forex trading via Dealing Room dealers (over the phone) requires knowledge about the way dealing rooms work, and the terminologies used in the course of trading.

At start, the client should specify whether he/she is interested in obtaining a QUOTE (in order to make a deal) or just an INDICATION. In the case of an indication, the price given does not bind the dealer, but rather provides information about market conditions.

When asking for QUOTE, the trader must specify the currency pair and the deal amount (volume). For example: “Need a quote for EUR/USD in EUR100,000”.

It is wise to withhold from the dealer the intended direction of the deal, specifying the pair only. Accordingly, the dealer then provides a quote comprising two prices, buy and sell (“both sides quote”). The quote binds the dealer for the very second it is given. If the trader does not immediately ask for execution, then the price is no longer in force. The dealer would then tell the customer “risk”, or “change”, meaning – the price quoted is no longer in force. In such case, the trader should ask for a new price.

On the other hand, in order to make a deal, the trader must proclaim “buy” or “sell”, together with the currency (or the price).

An example:

• The trader asks for a quote for EUR/USD.

• The dealer says “1.2010/15”.

• If the trader wants to buy EUR, he/she says “buy" (or "buy EURO”, or “15”.

• If the trader wants to sell EUR, he/she says “sell" (or "sell EURO”, or “10”.

The moment the trader says “buy” (or “sell”) he/she is bound to the deal, regardless of the market situation.

Transaction processing and storage

Transaction processing and storage

As soon as a transaction is executed, the relevant data is processed securely and sent to the data server where it is stored. A backup is created on a different server farm, to ensure data integrity and continuity. All of this happens in real time, with no human intervention.

Trading online

provide these advantages because it assures “guaranteed rates and Stop-Loss”. That means that there will never be any additional requirement for funds as a result of a “gap” that causes you to surpass the Stop-Loss. See “20 issues you must consider” (Chapter 9) for more.

Trading online

The trading platform operates 24 hours a day just as the global Forex market runs around the clock.

However, many online Forex market makers require the download and installation of software specific to their own trading platform. Consequently, accessibility is limited to those terminals that have the software. Since Forex trading is borderless, and may be performed at any given time, it is obviously advantageous to have access to trading from as many locations as possible. The Easy-Forex™ Trading Platform is a fully web-based system, which means trading can be conducted from any computer connected to the internet. Traders are only required to log-in, ensure they have available funds to trade, or make new deposits, and commence trading.

The Trading Platform: real-time software

The main feature of any Forex trading platform is real time access to exchange rates, to deal and order making, to deposits and withdrawals, and to monitoring the status of positions and one’s account.

The Easy-Forex™ Trading Platform system uses web services to continuously fetch the most current exchange rates. The most recent data displays without the need for a page refresh. This includes account status screens such as “My Position”, which updates continually to reflect changes in rates and other real time elements.

Depositing funds

Depositing funds
New registrants must deposit funds to facilitate trading. However, the majority of the Forex platforms today require that, in addition to funds used for actual trading, an additional amount be deposited. Often called “maintenance margin” or “activity collateral”, its purpose is for the platform to have an additional guarantee. Some of the platforms that require an additional deposit do pay interest on the collateral, which is “frozen” under the trader’s name.
The Easy-Forex™ Trading Platform does NOT require any additional guarantee, and allows trading with 100% of the amount deposited. Easy-Forex™ is able to

Registering

Requirements vary with each trading platform, but these steps bear further discussion:

Registering

Registration is done online by the individual trader. There are various forms used in the industry. Some are quite simple, where others are longer and more time-consuming. In part, this can be attributed to governmental or other authorities’ requirements, though some Forex platforms require more information than is actually needed. Some even require a face-to-face meeting, or to obtain hard copies of required documents such as a passport, or driver’s license.

The key requirements for registration are the trader’s full name, telephone, e-mail address, residence, and sometimes also the trader’s yearly income or capital (equity) and an ID number (passport / driver’s license / SSN / etc.). Typically, the Forex platform is not required to run a thorough check, but rely on the registrant to be truthful. Nevertheless, each Forex platform conducts certain routines, in order to check and verify the authenticity of the details provided.

Registrants are required to declare that funds used for trading are not in question, and are not the result of any criminal act or money laundering activity. This is mandatory as part of a global anti-money laundering effort.

Overview of trading Forex online

How a Forex system operates in real time

Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.

Up-to-date exchange rates

As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates. A trader may choose to “lock in” to a rate (called the “freeze rate”) only as long as it is displayed.

Trading online on Forex platforms

The internet revolution caused a major change in the way Forex trading is conducted throughout the world.

Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits.

Forex on the internet: basic steps

In general, the individual Forex trader is required to fulfill two steps prior to trading:

• Register at the trading platform

• Deposit funds to facilitate trading

Overview of trading Forex online

How a Forex system operates in real time

Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.

Up-to-date exchange rates

As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates. A trader may choose to “lock in” to a rate (called the “freeze rate”) only as long as it is displayed.

Trading online on Forex platforms

The internet revolution caused a major change in the way Forex trading is conducted throughout the world.

Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits.

Forex on the internet: basic steps

In general, the individual Forex trader is required to fulfill two steps prior to trading:

• Register at the trading platform

• Deposit funds to facilitate trading

Overview of trading Forex online

How a Forex system operates in real time

Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.

Up-to-date exchange rates

As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates. A trader may choose to “lock in” to a rate (called the “freeze rate”) only as long as it is displayed.

Trading online on Forex platforms

The internet revolution caused a major change in the way Forex trading is conducted throughout the world.

Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits.

Forex on the internet: basic steps

In general, the individual Forex trader is required to fulfill two steps prior to trading:

• Register at the trading platform

• Deposit funds to facilitate trading

Overview of trading Forex online

How a Forex system operates in real time
Online foreign exchange trading occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Quotes are accurate for the time they are displayed only. At any moment, a different rate may be quoted. When a trader locks in a rate and executes a transaction, that transaction is immediately processed; the trade has been executed.
Up-to-date exchange rates
As rates change so rapidly, any Forex software must display the most up-to-date rates. To accomplish this, the Forex software is continuously communicating with a remote server that provides the most current exchange rates. The rates quoted, unlike traditional bank exchange rates, are actual tradable rates. A trader may choose to “lock in” to a rate (called the “freeze rate”) only as long as it is displayed.
Trading online on Forex platforms
The internet revolution caused a major change in the way Forex trading is conducted throughout the world.
Until the advent of the internet-Forex age at the end of the 1990’s, Forex trading was conducted via phone orders (or fax, or in-person), posted to brokers or banks. Most of the trading could be executed only during business hours. The same was true for most activities related to Forex, such as making the deposits necessary for trading, not to mention profit taking. The internet has radically altered the Forex market, enabling around the clock trading and conveniences such as the use of credit cards for fund deposits.
Forex on the internet: basic steps
In general, the individual Forex trader is required to fulfill two steps prior to trading:
• Register at the trading platform
• Deposit funds to facilitate trading

Do market makers and clients have a conflict of interest?

customers. The relationship between the trader (the customer) and the market maker (the bank; the trading platform; Easy-Forex™; etc.) is simply based on the fundamental market forces of supply and demand.

Can a market maker influence market prices against a client’s position?

Definitely not, because the Forex market is the nearest thing to a “perfect market” (as defined by economic theory) in which no single participant is powerful enough to push prices in a specific direction. This is the biggest market in the world today, with daily volumes reaching 3 trillion dollars. No market maker is in a position to effectively manipulate the market.

What is the main source of earnings for Forex market makers?

The major source of earnings for market makers is the spread between the bid and the ask prices. Easy-Forex™ Trading Platform, for instance, maintains neutrality regarding the direction of any or all deals made by its traders; it earns its income from the spread.

How do market makers manage their exposure?

The way most market makers hedge their exposure is to hedge in bulk. They aggregate all client positions and pass some, or all, of their net risk to their liquidity providers. Easy-Forex™, for example, hedges its exposure in this fashion, in accordance with its risk management policy and legal requirements.

For liquidity, Easy-Forex™ works in cooperation with world's leading banks providing liquidity to the Forex industry: UBS (Switzerland) and RBS (Royal Bank of Scotland).

Who are the participants in today’s Forex market?

Who are the participants in today’s Forex market?

In general, there are two main groups in the Forex marketplace:

Hedgers account for less than 5% of the market, but are the key reason futures and other such financial instruments exist. The group using these hedging tools is primarily businesses and other organizations participating in international trade. Their goal is to diminish or neutralize the impact of currency fluctuations.

Speculators account for more than 95% of the market.

This group includes private individuals and corporations, public entities, banks, etc. They participate in the Forex market in order to create profit, taking advantage of the fluctuations of interest rates and exchange rates.

The activity of this group is responsible for the high liquidity of the Forex market. They conduct their trading by using leveraged investing, making it a financially efficient source for earning.
Market making
Since most Forex deals are made by (individual and organizational) traders, in conjunction with market makers, it’s important to understand the role of the market maker in the Forex industry.
Questions and answers about 'market making'
What is a market maker?
A market maker is the counterpart to the client. The Market Maker does not operate as an intermediary or trustee. A Market Maker performs the hedging of its clients' positions according to its policy, which includes offsetting various clients' positions, and hedging via liquidity providers (banks) and its equity capital, at its discretion.
Who are the market makers in the Forex industry?
Banks, for example, or trading platforms (such as Easy-Forex™), who buy and sell financial instruments “make the market”. That is contrary to intermediaries, which represent clients, basing their income on commission.
Do market makers go against a client's position?
By definition, a market maker is the counterpart to all its clients' positions, and always offers a two-sided quote (two rates: BUY and SELL). Therefore, there is nothing personal between the market maker and the customer. Generally, market makers regard all of the positions of their clients as a whole. They offset between clients' opposite positions, and hedge their net exposure according to their risk management policies and the guidelines of regulatory authorities.
Do market makers and clients have a conflict of interest?
Market makers are not intermediaries, portfolio managers, or advisors, who represent customers (while earning commission). Instead, they buy and sell currencies to the customer, in this case the trader. By definition, the market maker always provides a two-sided quote (the sell and the buy price), and thus is indifferent in regards to the intention of the trader. Banks do that, as do merchants in the markets, who both buy from, and sell to, their

Free floating

governments at one time or another seek to “manage” the value of their currency through changes in interest rates and other means of controls.

Managed floating exchange rates

Most governments engage in managed floating systems, if not part of a fixed exchange rate system.

The advantages of fixed exchange rates

Fixed rates provide greater certainty for exporters and importers and, under normal circumstances, there is less speculative activity - though this depends on whether dealers in foreign exchange markets regard a given fixed exchange rate as appropriate and credible.

The advantages of floating exchange rates

Fluctuations in the exchange rate can provide an automatic adjustment for countries with a large balance of payments deficit. A second key advantage of floating exchange rates is that it allows the government/monetary authority flexibility in determining interest rates as they do not need to be used to influence the exchange rate.

The fall of the us dollers-1

The basic theories underlying the US dollar to euro exchange rate

Law of One Price: In competitive markets, free of transportation cost barriers to trade, identical products sold in different countries must sell at the same price when the prices are stated in terms of the same currency.

Interest rate effects: If capital is allowed to flow freely, exchange rates become stable at a point where equality of interest is established.

The dual forces of supply and demand

These two reciprocal forces determine euro vs. US dollar exchange rates. Various factors affect these two forces, which in turn affect the exchange rates:

The business environment: Positive indications (in terms of government policy, competitive advantages, market size, etc.) increase the demand for the currency, as more and more enterprises want to invest in its place of origin.

Stock market: The major stock indices also have a correlation with the currency rates, providing a daily read of the mood of the business environment.

Political factors: All exchange rates are susceptible to political instability and anticipation about new governments. For example, political instability in Russia is also a flag for the euro to US dollar exchange, because of the substantial amount of German investment in Russia.

Economic data: Economic data such as labor reports (payrolls, unemployment rate and average hourly earnings), consumer price indices (CPI), producer price indices (PPI), gross domestic product (GDP), international trade, productivity, industrial production, consumer confidence etc., also affect currency exchange rates.

Confidence in a currency is the greatest determinant of the real euro to US dollar exchange rate. Decisions are made based on expected future developments that may affect the currency.

Types of exchange rate systems

An exchange can operate under one of four main types of exchange rate systems:

Fully fixed exchange rates

In a fixed exchange rate system, the government (or the central bank acting on its behalf) intervenes in the currency market in order to keep the exchange rate close to a fixed target. It is committed to a single fixed exchange rate and does not allow major fluctuations from this central rate.

Semi-fixed exchange rates

Currency can move within a permitted range, but the exchange rate is the dominant target of economic policy-making. Interest rates are set to meet the target exchange rate.

Free floating

The value of the currency is determined solely by supply and demand in the foreign exchange market. Consequently, trade flows and capital flows are the main factors affecting the exchange rate.

The definition of a floating exchange rate system is a monetary system in which exchange rates are allowed to move due to market forces without intervention by national governments. The Bank of England, for example, does not actively intervene in the currency markets to achieve a desired exchange rate level.

With floating exchange rates, changes in market supply and demand cause a currency to change in value. Pure free floating exchange rates are rare - most

The fall of the US dollar

In the long run, the correlation between the bilateral US dollar to euro exchange rate, and different measures of the effective exchange rate of Euroland, has been rather high, especially when one looks at the effective real exchange rate. As inflation is at very similar levels in the US and the Euro area, there is no need to adjust the US dollar to euro rate for inflation differentials. However, because the Euro zone also trades intensively with countries that have relatively high inflation rates (e.g. some countries in Central and Eastern Europe, Turkey, etc.), it is more important to downplay nominal exchange rate measures by looking at relative price and cost developments.

The fall of the US dollar
The steady and orderly decline of the US dollar from early 2002 to early 2004 against the euro, Australian dollar, Canadian dollar and a few other currencies (i.e. its trade-weighted average, which is what counts for purposes of trade adjustment), while significant, has still only amounted to about 20 percent.
There are two reasons why concerns about a free fall of the US dollar may not be worth considering. Firstly, the US external deficit will stay high only if US growth remains vigorous, and if the US continues to grow strongly, it will also retain a strong attraction for foreign capital which, in turn, should support the US dollar. Secondly, attempts by the monetary authorities in Asia to keep their currencies weak will probably not work in the long run.

In the long run, the correlation between the bilateral US dollar to euro exchange rate, and different measures of the effective exchange rate of Euroland, has been rather high, especially when one looks at the effective real exchange rate. As inflation is at very similar levels in the US and the Euro area, there is no need to adjust the US dollar to euro rate for inflation differentials. However, because the Euro zone also trades intensively with countries that have relatively high inflation rates (e.g. some countries in Central and Eastern Europe, Turkey, etc.), it is more important to downplay nominal exchange rate measures by looking at relative price and cost developments.

Factors affecting the Euro to US dollar exchange rate

bilateral trade links with the US, trade with the UK is, to some extent, more important for the euro.

The following chart illustrates the EUR/USD exchange rate over time, from the inauguration of the euro, until mid 2006. Note that each line (the EUR/USD, USD/EUR) is a “mirror” image of the other, since both are reciprocal to one another. This chart is illustrates the steady (general) decline of the USD (in terms of euro) from the beginning of 2002 until the end of 2004

The explosion of the euro market

The explosion of the euro market

The rapid development of the Eurodollar market, which can be defined as US dollars deposited in banks outside the US, was a major mechanism for speeding up Forex trading. Similarly, Euro markets are those where currencies are deposited outside their country of origin. The Eurodollar market came into being in the 1950s as a result of the Soviet Union depositing US dollars earned from oil revenue outside the US, in fear of having these assets frozen by US regulators. This gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government reacted by imposing laws to restrict dollar lending to foreigners. Euro markets were particularly attractive because they had far fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous place for holding excess liquidity, providing short-term loans and financing imports and exports.

London was and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market, when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.

Euro-Dollar currency exchange

The euro to US dollar exchange rate is the price at which the world demand for US dollars equals the world supply of euros. Regardless of geographical origin, a rise in the world demand for euros leads to an appreciation of the euro.

Factors affecting the Euro to US dollar exchange rate

Four factors are identified as fundamental determinants of the real euro to US dollar exchange rate:

• The international real interest rate differential between the Federal Reserve and European Central Bank

• Relative prices in the traded and non-traded goods sectors

• The real oil price

• The relative fiscal position of the US and Euro zone

The nominal bilateral US dollar to euro exchange is the exchange rate that attracts the most attention. Notwithstanding the comparative importance of

The Gold exchange period and the Bretton-Woods Agreement-01

standard, currencies experienced an era of stability because they were supported by the price of gold.

However, the gold standard had a weakness in that it tended to create boom-bust economies. As an economy strengthened, it would import a great deal, running down the gold reserves required to support its currency. As a result, the money supply would diminish, interest rates would escalate and economic activity would slow to the point of recession. Ultimately, prices of commodities would hit rock bottom, thus appearing attractive to other nations, who would then sprint into a buying frenzy. In turn, this would inject the economy with gold until it increased its money supply, thus driving down interest rates and restoring wealth. Such boom-bust patterns were common throughout the era of the gold standard, until World War I temporarily discontinued trade flows and the free movement of gold.

The Bretton-Woods Agreement was founded after World War II, in order to stabilize and regulate the international Forex market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold. The dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the USA. Countries were prohibited from devaluing their currencies to benefit export markets, and were only allowed to devalue their currencies by less than 10%. Post-war construction during the 1950s, however, required great volumes of Forex trading as masses of capital were needed. This had a destabilizing effect on the exchange rates established in Bretton-Woods.

In 1971, the agreement was scrapped when the US dollar ceased to be exchangeable for gold. By 1973, the forces of supply and demand were in control of the currencies of major industrialized nations, and currency now moved more freely across borders. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s. New financial instruments, market deregulation and trade liberalization emerged, further stoking growth of Forex markets.

The explosion of computer technology that began in the 1980s accelerated the pace by extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased rapidly from nearly $70 billion a day in the 1980s, to more than $2 trillion a day two decades later.

What is the global Forex market?

short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions.

What is the global Forex market?

Today, the Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are continually and simultaneously bought and sold across local and global markets. The value of traders' investments increases or decreases based on currency movements. Foreign exchange market conditions can change at any time in response to real-time events.

The main attractions of short-term currency trading to private investors are:

• 24-hour trading, 5 days a week with nonstop access (24/7) to global Forex dealers.

• An enormous liquid market, making it easy to trade most currencies.

• Volatile markets offering profit opportunities.

• Standard instruments for controlling risk exposure.

• The ability to profit in rising as well as falling markets.

• Leveraged trading with low margin requirements.

• Many options for zero commission trading.

A brief history of the Forex market

The following is an overview into the historical evolution of the foreign exchange market and the roots of the international currency trading, from the days of the gold exchange, through the Bretton-Woods Agreement, to its current manifestation.

The Gold exchange period and the Bretton-Woods Agreement

The Bretton-Woods Agreement, established in 1944, fixed national currencies against the US dollar, and set the dollar at a rate of USD 35 per ounce of gold. In 1967, a Chicago bank refused to make a loan in pound sterling to a college professor by the name of Milton Friedman, because he had intended to use the funds to short the British currency. The bank's refusal to grant the loan was due to the Bretton-Woods Agreement.

Bretton-Woods was aimed at establishing international monetary stability by preventing money from taking flight across countries, thus curbing speculation in foreign currencies. Between 1876 and World War I, the gold exchange standard had ruled over the international economic system. Under the gold

Leverage

Leverage

Leveraged financing is a common practice in Forex trading, and allows traders to use credit, such as a trade purchased on margin, to maximize returns. Collateral for the loan/leverage in the margined account is provided by the initial deposit. This can create the opportunity to control USD 100,000 for as little as USD 1,000.

There are five ways private investors can trade in Forex, directly or indirectly:

• The spot market

• Forwards and futures

• Options

• Contracts for difference

• Spread betting

Please note that this book focuses on the most common way of trading in the Forex market, “Day-Trading” (related to “Spot”). Please refer to the glossary for explanations of each of the five ways investors can trade in Forex.

A spot transaction

A spot transaction is a straightforward exchange of one currency for another. The spot rate is the current market price, which is also called the “benchmark price”. Spot transactions do not require immediate settlement, or payment “on the spot”. The settlement date, or “value date” is the second business day after the “deal date” (or “trade date”) on which the transaction is agreed by the trader and market maker. The two-day period provides time to confirm the agreement and to arrange the clearing and necessary debiting and crediting of bank accounts in various international locations.

Risks

Although Forex trading can lead to very profitable results, there are substantial risks involved: exchange rate risks, interest rate risks, credit risks and event risks.

Approximately 80% of all currency transactions last a period of seven days or less, with more than 40% lasting fewer than two days. Given the extremely

Margin

GBP/USD = 1.7464;

USD/JPY = 112.29;

Therefore: GBP/JPY = 112.29 x 1.7464 = 196.10.

Margin

Banks and/or online trading providers need collateral to ensure that the investor can pay in the event of a loss. The collateral is called the “margin” and is also known as minimum security in Forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future.

Margin enables private investors to trade in markets that have high minimum units of trading, by allowing traders to hold a much larger position than their account value. Margin trading also enhances the rate of profit, but similarly enhances the rate of loss, beyond that taken without leveraging.

Maintenance Margin

Most trading platforms require a “maintenance margin” be deposited by the trader parallel to the margins deposited for actual trades. The main reason for this is to ensure the necessary amount is available in the event of a “gap” or “slippage” in rates. Maintenance margins are also used to cover administrative costs.

When a trader sets a Stop-Loss rate, most market makers cannot guarantee that the stop-loss will actually be used. For example, if the market for a particular counter currency had a vertical fall from 1.1850 to 1.1900 between the close and opening of the market, and the trader had a stop-loss of 1.1875, at which rate would the deal be closed? No matter how the rate slippage is accounted for, the trader would probably be required to add-up on his initial margin to finalize the automatically closed transaction. The funds from the maintenance margin might be used for this purpose.

Important note: Easy-Forex™ does NOT require that traders deposit a maintenance margin. Easy-Forex™ guarantees the exact rate (Stop-Loss or other) as pre-defined by the trader.

Spreads

It is the difference between BUY and SELL, or BID and ASK. In other words, this is the difference between the market maker's "selling" price (to its clients) and the price the market maker "buys" it from its clients.

If an investor buys a currency and immediately sells it (and thus there is no change in the rate of exchange), the investor will lose money. The reason for this is “the spread”. At any given moment, the amount that will be received in the counter currency when selling a unit of base currency will be lower than the amount of counter currency which is required to purchase a unit of base currency. For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1,000 pips (percentage in points; one pip = 0.0001). Such a rate is much higher than the bid/ask currency rates that online Forex investors commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips. In general, smaller spreads are better for Forex investors since they require a smaller movement in exchange rates in order to profit from a trade.

Prices, Quotes and Indications

The price of a currency (in terms of the counter currency), is called “Quote”. There are two kinds of quotes in the Forex market:

Direct Quote: the price for 1 US dollar in terms of the other currency, e.g. – Japanese Yen, Canadian dollar, etc.

Indirect Quote: the price of 1 unit of a currency in terms of US dollars, e.g. – British pound, euro.

The market maker provides the investor with a quote. The quote is the price the market maker will honor when the deal is executed. This is unlike an “indication” by the market maker, which informs the trader about the market price level, but is not the final rate for a deal.

Cross rates – any quote which is not against the US dollar is called “cross”. For example, GBP/JPY is a cross rate, since it is calculated via the US dollar. Here is how the GBP/JPY rate is calculated:

Exchange rate

Because currencies are traded in pairs and exchanged one against the other when traded, the rate at which they are exchanged is called the exchange rate. The majority of currencies are traded against the US dollar (USD), which is traded more than any other currency. The four currencies traded most frequently after the US dollar are the euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or “the Majors”. Some sources also include the Australian dollar (AUD) within the group of major currencies.
The first currency in the exchange pair is referred to as the base currency. The second currency is the counter currency or quote currency. The counter or quote currency is thus the numerator in the ratio, and the base currency is the denominator.
The exchange rate tells a buyer how much of the counter or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter or quote currency when

Exchange rate

Because currencies are traded in pairs and exchanged one against the other when traded, the rate at which they are exchanged is called the exchange rate. The majority of currencies are traded against the US dollar (USD), which is traded more than any other currency. The four currencies traded most frequently after the US dollar are the euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or “the Majors”. Some sources also include the Australian dollar (AUD) within the group of major currencies.
The first currency in the exchange pair is referred to as the base currency. The second currency is the counter currency or quote currency. The counter or quote currency is thus the numerator in the ratio, and the base currency is the denominator.
The exchange rate tells a buyer how much of the counter or quote currency must be paid to obtain one unit of the base currency. The exchange rate also tells a seller how much is received in the counter or quote currency when

Components of a Forex deal-1

an investor had bought 1,000 euros on that date, he would have paid 1,199.00 US dollars. If one year later, the Forex rate was 1.2222, the value of the euro has increased in relation to the US dollar. The investor could now sell the 1,000 euros in order to receive 1222.00 US dollars. The investor would then have USD 23.00 more than when he started a year earlier.
However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a “risk-free” investment. Long-term US government bonds are considered to be a risk-free investment since there is virtually no chance of default - i.e. the US government is not likely to go bankrupt, or be unable or unwilling to pay its debts.
Trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back that currency in order to lock in the profit. An open trade (also called an “open position”) is one in which a trader has bought or sold a particular currency pair, and has not yet sold or bought back the equivalent amount to complete the deal.
It is estimated that around 95% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
E

Components of a Forex deal

A Forex deal is a contract agreed upon between the trader and the market-maker (i.e. the Trading Platform). The contract is comprised of the following components:
• The currency pairs (which currency to buy; which currency to sell)
• The principal amount (or "face", or "nominal": the amount of currency involved in the deal)
• The rate (the agreed exchange rate between the two currencies).
Time frame is also a factor in some deals, but this chapter focuses on Day-Trading (similar to “Spot” or “Current Time” trading), in which deals have a lifespan of no more than a single full day. Thus, time frame does not play into the equation. Note, however, that deals can be renewed (“rolled-over”) to the next day for a limited period of time.
The Forex deal, in this context, is therefore an obligation to buy and sell a specified amount of a particular pair of currencies at a pre-determined exchange rate.
Forex trading is always done in currency pairs. For example, imagine that the exchange rate of EUR/USD (euros to US dollars) on a certain day is 1.1999 (this number is also referred to as a “spot rate”, or just “rate”, for short). If

What is Forex trading? What is a Forex deal?

The investor's goal in Forex trading is to profit from foreign currency movements.
More than 95% of all Forex trading performed today is for speculative purposes (e.g. to profit from currency movements). The rest belongs to hedging (managing business exposures to various currencies) and other activities.
Forex trades (trading onboard internet platforms) are non-delivery trades: currencies are not physically traded, but rather there are currency contracts which are agreed upon and performed. Both parties to such contracts (the trader and the trading platform) undertake to fulfill their obligations: one side undertakes to sell the amount specified, and the other undertakes to buy it. As mentioned, over 95% of the market activity is for speculative purposes, so there is no intention on either side to actually perform the contract (the physical delivery of the currencies). Thus, the contract ends by offsetting it against an opposite position, resulting in the profit and loss of the parties involved.

How do I start trading?

If you wish to trade using the Easy-Forex™ Trading Platform, or any other, you must first register and then deposit the amount you wish to have in your margin account to invest. Registering is easy with Easy-Forex™ and it accepts payment via most major credit cards, PayPal, Western Union. Once your deposit has been received, you are ready to start trading.
How do I monitor my Forex trading?
Online, anywhere, anytime. You have full control to monitor your trading status, check scenarios, change some terms in your Forex deals, close deals, or withdraw profits.

How risky is Forex trading?

How risky is Forex trading?
You cannot lose more than your initial investment (also called your “margin”). The profit you may make is unlimited, but you can never lose more than the margin. You are strongly advised to never risk more than you can afford to lose.

Forex? What is it, anyway?

The market
The currency trading (foreign exchange, Forex, FX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds, and private individuals like you.
What happens in the market?
Markets are places where goods are traded, and the same goes with Forex. In Forex markets, the “goods” are the currencies of various countries (as well as gold and silver). For example, you might buy euro with US dollars, or you might sell Japanese Yen for Canadian dollars. It’s as basic as trading one currency for another.
Of course, you don’t have to purchase or sell actual, physical currency: you trade and work with your own base currency, and deal with any currency pair you wish to.
“Leverage” is the Forex advantage
The ratio of investment to actual value is called “leverage”. Using a $1,000 to buy a Forex contract with a $100,000 value is “leveraging” at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs.
The advantageous thing about the Forex market is that regular daily fluctuations – in the regular currency exchange markets, often around 1% - are multiplied by 100! (Easy-Forex™ generally offers trading ratios from 1:50 to 1:200).

Computer General knowledege

1. If a word is typed that is not in Word’s dictionary, a ___ wavy underline appears below the word.
(A) red
(B) green
(C) blue
(D) black
(E) None of these
Ans (A)
2. The _____ button on the quick access Toolbar allows you to cancel your recent commands or actions.
(A) Search
(B) Cut
(C) Document
(D) Undo
(E) None of these
Ans (D)
3. In Excel, any set of characters containing a letter , hyphen, or space is considered ___
(A) a formula
(B) text
(C) a name
(D) a title
(E) None of these
Ans (B)
4. ________ Software allows users to perform calculations on rows and columns of data.
(A) Word processing
(B) Presentation graphics
(C) Database Management Systems
(D) Electronic Spreadsheet
(E) None of these
Ans (C)
5. A _________ represent approximately one billion memory locations.
(A) kilobyte
(B) megabyte
(C) gigabyte
(D) terabyte
(E) None of these
Ans (C)
6. ______ cells involves creating a single cell by combining two or more selected cells.
(A) Formatting
(B) Merging
(C) Embedding
(D) Splitting
(E) None of these
Ans (B)
7. The operating system is the most common type of ______________ software.
(A) communication
(B) application
(C) system
(D) word-processing
(E) None of these
Ans (C)
8. When you quickly press and releaes the left mouse button twice , you are ____
(A) Primary-clicking
(B) pointing
(C) Double-clicking
(D) Secondary-clicking
(E) None of these
Ans (C)
9. The horizontal and vertical lines on a worksheet are called ___
(A) cells
(B) sheets
(C) block lines
(D) gridlines
(E) None of these
Ans (D)
10. To delete an incorrect character in a document, __________ to erase to the right of the insertion point.
(A) press the left mouse key
(B) double-click the right mouse key
(C) press the BACKSPACE key
(D) press the delete key
(E) None of these
Ans (D)
11. The operating system does all of the following EXCEPT:
A provide a way for the user to interact with the computer.
B manage the central processing unit (CPU).
C manage memory and storage.
D enable users to perform a specific task such as document editing.
Ans (D)
12. During the boot process, the ____________ looks for the system files.
A CD
B. BIOS
C. CPU
D. DVD
AnS (B)
13. ____________ are lists of commands that appear on the screen.
A GUIs
B Icons
C Menus
D Windows
Answer: C
14. ____________ is the ability of an operating system to control the activities of multiple programs at the same time.
A Multitasking
B Streamlining
C Multiuser
D Simulcasting
Answer: A
15. The unique signal, generated by a device, that tells the operating system that it is in need of immediate attention is called an:
A action.
B event.
C interrupt.
D activity.
Answer: C
16. The operating system controls access to the processor by assigning a(n) ____________ to each task requiring the processor’s attention.
A CPU
B slice of time
C stack
D event
Answer: B
17. The blocks of code, included in the operating system, that software applications interact with are known as:
A application programming interfaces (APIs).
B complimentary metal-oxide conductors (CMOS).
C device drivers.
D bootstrap loaders.
Answer: A
18. MS-DOS is a ____________ operating system.
A point-and-click
B user-friendly
C command-driven
D Mac
Answer: C
19. An interrupt handler is a(n):
A location in memory that keeps track of recently generated interrupts.
B peripheral device.
C utility program.
D special numeric code that indicates the priority of a request.
Answer: D
20. A spooler is a(n):
A location in memory that maintains the contents of a document until it prints out.
B print job.
C program that coordinates the print jobs that are waiting to print.
D message sent from the printer to the operating system when a print job is completed.
Answer: C
21. Virtual memory is typically located:
A on a floppy disk.
B in the CPU.
C in a flash card.
D on the hard drive.
Answer: D
22. The purpose of a swap (or page) file is to:
A maintain pages of documents that are being spooled to the printer.
B hold a program’s data or instructions in virtual memory when it can’t fit in RAM.
C prevent thrashing in a multitasking environment.
D allow multiple print jobs to print their pages out simultaneously.
Answer: B
23. The definition of thrashing is:
A swapping data between virtual memory and RAM too frequently.
B insufficient hard disk space.
C too many processors being managed by the operating system.
D inaccurate information stored in the registry.
Answer: A
24. All of the following are TRUE of Safe Mode EXCEPT:
A Safe Mode is a special diagnostic mode.
B Safe Mode loads all nonessential icons.
C Safe Mode allows users to troubleshoot errors.
D Safe Mode loads only the most essential devices.
Answer: B
25. Verification of a login name and password is known as:
A configuration.
B accessibility.
C authentication.
D logging in.
Answer: C
26. The combination of the operating system and the processor is referred to as the computer’s:
A CPU.
B platform.
C BIOS.
D CMOS.
Answer: B
27. The following message generally means:
A a nonsystem floppy has been left in the floppy disk drive.
B the CD drive is not functioning.
C the BIOS is corrupted.
D there is a problem loading a device.
Answer: A
28. Which of the following is the correct sequence of actions that takes place during the boot-up process?
A Load operating system ? Activate BIOS ? Perform POST ? Check configuration settings
B Activate BIOS ? Perform POST ? Load operating system ? Check configuration settings
C Perform POST ? Load operating system ? Activate BIOS ? Check configuration settings
D Activate BIOS ? Check configuration settings ? Perform POST ? Load operating system
Answer: B
29. All of the following are steps involved in the boot process EXCEPT:
A load the operating system into RAM.
B the power-on self-test.
C activate the basic input/output system (BIOS).
D load application programs.
Answer: D
30. The ____________, stored on a ROM chip, is responsible for loading the operating system from its permanent location on the hard drive into RAM.
A BIOS
B API
C device driver
D supervisor program
Answer: A
31. The basic input/output system (BIOS) is stored in:
A RAM.
B ROM.
C the CPU.
D the hard drive.
Answer: B
32. Ensuring that the essential peripheral devices are attached and operational is the ____________ process.
A configuration
B CMOS
C POST
D ROM
Answer: C
33. The memory resident portion of the operating system is called the:
A registry.
B API.
C CMOS.
D kernel.
Answer: D
34. Which of the following does NOT occur during the power-on self-test (POST)?
A The ScanDisk utility begins to run.
B The video card and video memory are tested.
C The BIOS identification process occurs.
D Memory chips are checked to ensure they are working properly.
Answer: A
35. All of the following are TRUE regarding virtual memory EXCEPT:
A any amount of RAM can be allocated to virtual memory.
B the setting for the amount of hard drive space to allocate to virtual memory can be manually changed.
C this temporary storage is called the swap file (or page file).
D virtual memory is physical space on the hard drive.
Answer: A
36. The operating system allows users to organize the computer’s contents in a hierarchical structure of directories that include all of the following EXCEPT:
A files.
B folders.
D drives.
D systems.
Answer: D
37. All of the following statements concerning windows are true EXCEPT:
A windows are an example of a command-driven environment.
B windows can be resized and repositioned on the desktop.
C more than one window can be open at a time.
D toolbars and scrollbars are features of windows.
Answer: A
38. All of the following statements concerning files are true EXCEPT:
A A file is a collection of related pieces of information stored together for easy reference.
B Files can be generated from an application.
C Files are stored in RAM.
D Files should be organized in folders.
Answer: C
39. Using Windows Explorer, a plus (+) sign in front of a folder indicates:
A an open folder.
B the folder contains subfolders.
C a text file.
D a graphics file.
Answer: B
40. In Windows XP, if you want to see the file size and modified dates of all files in a folder, the best viewing option is the __________ view.
A List
B Thumbnails
C Details
D Icon
Answer: C

No Questions Quiz 8 Answers page-2

No Questions Quiz 8 Answers

51 Ignatius Loyola founded which organisation Jesuits

52 Which 16th century Italian wrote The Prince Machiavelli

53 A meander bend in a river, named from river meander - where Turkey

54 Who tells the story in The Arabian Nights Sheherazade

55 Alfred Jingle appears in which Dickens novel The Pickwick Papers

56 Vaselina and Brillantino were alternate names which film Grease

57 Chaplin ate a boot in the Gold Rush - what was it made of Liquorice

58 Phoebe Anne Mozee better known as who Annie Oakley

59 What is the tenth letter of the Greek alphabet Kappa

60 If you were misocapnic what do you hate Tobacco Smoke

61 In sailing ship days who often acted as the ships doctor Cook

62 An isoneph on a map joins places of equal what Average Cloud Cover

63 Bumper Harris - wooden leg - what Job on London Underground Ride new escalators

64 Who is Ivanhoe's wife Rowena

65 The Lent Lilly has a more common name - what Daffodil

66 What would you be if you were a coryphée Ballet Dancer

67 Whose last words were - "Clito I owe a cock to Asclepius" Socrates

68 What does the German word Panzer literally mean Armour

69 What is Frances longest river Loire

70 In which month is the Munich beer festival held October

71 What was the name of Norse God Thor's hammer Mjolnir

72 Who ordered John the Baptists execution King Herod

73 What was Walt Disney's first cartoon character Oswald the Rabbit

74 What medication discovered in 1928 but introduced 1940 Penicillin

75 Who wrote Beau Geste P C Wren

76 Prophesied the Chalus the Greek - Die on day - did of what Laughing cos he was

not dead

77 Who is Aladdin's father Mustapha the tailor

78 What American state is the Badger state Wisconsin

79 Why was Fred Lorz disqualified 1904 Olympic marathon Hitched a lift passing

car

80 In China what colour does the bride traditionally wear Red

81 A muster is a group of which birds Peacocks

82 Bohea is a type of what Tea

83 In which country were antibiotics first used Egypt - used mouldy

bread

84 Which country grew the first Orange China

85 Gossima was the original name of what game Table Tennis

86 Wild marjoram is also known as what Oregano

87 What was the name of Roses monkey in Friends Marcel

88 Horse brasses - on dreyhorses - originally what purpose Charms - ward off evil

89 Alfred Hitchcock admitted to being terrified of what Policeman

90 What was the name of Sancho Panza's donkey Dapple

91 What is Steganography Invisible ink writing

92 An Albert chain is usually attached to what Watch

93 An unkindness is a group of what birds Ravens

94 A fellmonger deals in what items Animal skins

95 What colour habit do Franciscan monks wear Grey

96 Nenen-Kona is sold in Russia - what do we call it Pepsi-Cola

97 Hugh Lofting created which famous character Doctor Dolittle

98 What was the name of Russian bear mascot 1980 Olympics Mischa

99 What ingredient must French ice cream contain by law Eggs

100 A kindle is the name for a group of what young animals Kittens

No Questions Quiz 8 Answers page-1

No Questions Quiz 8 Answers

1 Joseph Lister - first operation antiseptic - 1867 on who His sister

2 What was Black Beauties original name Darkie

3 Who was the original Peeping Tom looking at Lady Godiva

4 What element is present in all organic compounds Carbon

5 What was Professor Moriarties first name James

6 Who was known as the Little Brown Saint Ghandi

7 Who rode a horse called Morengo Napoleon at Waterloo

8 A skulk is a group of which animals Foxes

9 Who defended World heavyweight title twice on same night in 1906 Tommy Burns – both

1st KOs

10 What part of an aircraft is the empennage Tail Unit

11 We know who wrote Little Women but who wrote Little Men Lousia May Alcott

12 Who was the Goddess of the rainbow Iris

13 In European city can you be jailed for not killing furry caterpillars Brussels

14 Who was Olive Oyls boyfriend - before Popeye Ham Gravy

15 Sienna law forbids women of what name from prostitution Maria

16 What do the letters MG stand for on cars Morris Garages

17 Who was the first actor to appear on cover of Time magazine Charlie Chaplin

18 Polyphemus was the leader of which group of mythical giants Cyclops

19 What does a pluviomoter measure Rainfall

20 Which game was illegal in Elizabethan England Bowls

21 What nationality was Oddjob Korean

22 What is a Knout Russian flogging whip

23 What language has the most words English

24 Which film star used to be a circus acrobat Burt Lancaster

25 The comma bacillus causes what disease Cholera

26 Which country invented Venetian Blinds Japan

27 What is a quadriga Roman 4 horse chariot

28 What is a brickfielder Hot SE Aussie wind

29 Pupik means belly button in what language Yiddish

30 What is the main ingredient in Borsch Beetroot

31 What was the name of Dr Dolittle’s Parrot Polynesia

32 What was the name of William Tells son (the apple head boy) Walter

33 Laika was the first ever dog to do what Go into space

34 Where could you spend a Markka Finland

35 What links a bick, throat, half swage, punching hole Anvil they are parts of

it

36 The Fagus is the Latin name of what type of tree Beech

37 If you have Chlorosis what colour does the skin go Green

38 The French say Bis - what word do the English use Encore

39 Of what are Karakul, Texel, Romney Marsh types Sheep

40 What is biltong Dried meat

41 What type of fish is Scomber Scombrus Mackerel

42 What are brick, fontina, port salut, quargel types of Cheese

43 In which country did the turnip originate Greece

44 Tchaikovsky died of which disease Cholera

45 Sam Barraclough owned which film star Lassie

46 Which animals can live longest without water Rats

47 Captain Hanson Gregory Crockett created what void in 1847 Hole in Doughnuts

48 Kaka means parrot in which language Maori

49 Who wrote A Town Like Alice Nevil Shute

50 Which fruit contains the most protein Avocado

No Questions Quiz 7 Answers-page-3

No Questions Quiz 7 Answers

51 What is a Bellwether Leader of flock of

sheep

52 What was Procul Harem's greatest hit Whiter shade of pale

53 Percy Shaw invented what in 1934 Cats eyes

54 What animal produces its own sun tan lotion Hippopotamus

55 What was a Nuremberg egg Pocket watch / clock

56 What was the name of Isaac Newton's dog - caused fire in lab Diamond

57 Who was eaten by dogs in the Old Testament Jezebel

58 In literature who is the alter ego of Percy Blakney Scarlet Pimpernel

59 Juglans Regia is the real name of what type of nut tree Walnut

60 What album cover (by the Rolling Stones) had a zip on the side Sticky Fingers

61 What lives in a holt An Otter

62 Who is the Patron Saint of dancers and actors St Vitas

63 What is the worlds tallest grass Bamboo

64 Who owned the newspaper in Lou Grant - Nancy Marchand Mrs Pyncheron

65 Who reputedly first said - if in doubt tell the truth Mark Twain

66 John Richie became famous under what name Sid Vicious

67 In Greek mythology who rowed the dead across the river Styx Charon

68 Alfred White was a famous author under which name James Herriot

69 Which acid was first prepared from distilled red ants Formic acid

70 Who invented doctor Who Terry Nation

71 What took place on London's serpentine first time 16 June 1930 Mixed Bathing

72 Which European city was the bride of the sea Venice

73 Who (not Peter Sellers) played Inspector Clouseau in 1968 Alan Arkin

74 Where could you find the Lutine Bell Lloyds of London

75 Yabusame is the Japanese version of what sport Archery

76 Which Dickens novel is considered an autobiography David Copperfield

77 Dendrologists worship what Trees

78 What is the national sport of Finland Motor Rallying

79 Who was Agrippa's son Nero

80 Peter Goldmak invented what in 1948 LP record

81 Milton lost which sense Sight

82 What are camel haired brushes made of Squirrels tails

83 How did the Greek dramatist Aeschalys die Eagle dropped tortoise

on head

84 Playing card - Raymond Shaw trance - Manchurian Candidate Queen Diamonds

85 Eiffel designed the Eiffel tower - what was his first name Gustave

86 The Salk vaccine is used against what disease Polio

87 If you are born between June 23rd and July 23rd what star sign Cancer

88 An alloy of Iron - Chromium and Nickel makes what Stainless Steel

89 Who said "Public service is my motto" Al Capone

90 Drakes Golden Hind was originally called what The Pelican

91 In what film did Elvis play a Red Indian Stay away Joe

92 What did the Victorians call servant regulators Alarm Clocks

93 Which country first used the fountain pen Egypt

94 What is the more popular name for the Londonderry Air Danny Boy

95 Freyr was the Norse god of what Fertility

96 TAP is the national airline of which country Portugal

97 In which country is the port of Frey Bentos Uruguay

98 The Koh-i-Nor is a famous diamond - what does the name mean Mountain of Light

99 A nilometer measures the rise and fall of what Rivers (originally

Nile)

100 What was Britain's first colony (annexed in 1583) Newfoundland

No Questions Quiz 7 Answers-page-1

No Questions Quiz 7 Answers

1 Boob Day in Spain is what day in Britain (practical jokes played) April Fools Day 1

st

April

2 What crime did Theresa Vaughn commit 62 times in 5 years Bigamy - Tried 1922

3 Who sailed in a ship called Queen Ann's Revenge Blackbeard

4 Saponification is the process that makes what common product Soap

5 Blue red green yellow four Olympic rings colour what's missing Black

6 Detective Philip Marlow smokes what brand Camels

7 Who landed on Timor Island after being cast adrift Captain Bligh

8 What is the more common name of the Chaparral Cock The Road Runner

9 In what language did St Paul write his epistles Greek

10 Ian Fleming's house was called Goldeneye - which country Jamaica

11 Alfred Schneider became famous as who Lenny Bruce

12 A C-Curity was the original name of what common object Zip Fastener

13 Fidelity Bravery Integrity is which organisations motto FBI

14 Who was the first black entertainer to win an Emmy award Harry Bellefonte

15 Anthony Daniels played who in a series of films C-P3O

16 Of what material was the hairspring made in early watches Pigs Hair

17 In 1860 Napoleon III banquet - serving dishes dearer gold - what Aluminium

18 Which author created Dick Tracy Chester Gould

19 What is the worlds most widely used vegetable Onion

20 What are lentigines Freckles

21 What type of animal is a vmi-vmi Very small pig

22 What did Mege-Mouries invent in 1870 winning a Napoleon prize Margarine

23 What was Walt Disney's middle name Elias

24 Who would you expect to find in Castle Gondolofo The Pope

25 What two items make up the dish devils on horseback Bacon Prunes

26 What does ludo mean (literally) I Play

27 The Detours changed to The High Numbers then what name The Who

28 What animal was believed to be a cross camel - leopard Giraffe

29 An elephant has 400000 what in its trunk Muscles

30 What colour is cerulean Deep Blue

31 Who composed the Air for the G string (init and name) JS Bach

32 What were Twinkletoes - Lucky Jim (stuffed cats) first to do Fly across Atlantic

Alcock Brown

33 What are kreplach Jewish ravioli

34 The pica pica is what common bird Magpie

35 What male human feature was taxed in Elizabethan times Beards

36 Which record company rejected the Beatles as being past it Decca

37 From which country does spinach originate Iran

38 British policemen have truncheons what is USA equivalent Nightstick

39 In DC comics Linda Lee Danvers is whose alter ego Supergirl

40 In what country does the cow tree grow - sap looks tastes milk Venezuela

41 The penny black - worlds first stamp - what was second Two penny Blue

42 Which country produces Tokay Hungary

43 Where could you legally flash your dong - then spend it Vietnam currency

44 The Bald Eagle is Americas bird - What is Britain's Robin

45 Australian Clement Wragge instituted what Naming Hurricanes

46 What does Zip stand for in the American Zip Code Zone Improvement

Plan

47 What wood is plywood mostly made from Birch

48 What is a Hummum Turkish bath

49 In which sport are left handed people banned from playing Polo

50 What food was invented in a sanatorium in 1890 Kellogg corn flakes