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Retail Off-Exchange Forex Examination — Information & Free Practice

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Retail Off-Exchange Forex Examination

Provider
FINRA
Format
True/False and Multiple Choice
Exam questions
Total questions: 40; Scored questions: 40.
Time limit
1 hour
Passing score
70%
Exam fee
USD 90
Examination outline
  • Definitions and Terminology
    • American terms, European terms
    • Base currency, quote currency, terms currency, secondary currency
    • Bid/ask spread
    • Collateral, security deposit, margin
    • Counterparty, dealer: Futures Commission Merchant, Retail Foreign Exchange Dealer, other regulated entities listed in the Commodity Exchange Act
    • Cross rates
    • Currency pairs
    • Exchange rate
    • Forward points
    • Forward rate, bid forward rate, ask forward rate
    • Interest rate differential
    • Interest rate parity
    • Mark-ups, mark-downs
    • PIPs
    • Rollovers
    • Spot rate, spot price
    • Tom-next and spot-next
    • Trade date and settlement date
    • Swaps
  • Forex Trading Calculations
    • Cross rate transactions
    • Effects of leverage calculations
    • Netting of positions
    • Unrealized gain/loss
    • Profit & loss calculations
    • Pip values
    • Return on collateral, security deposit, margin
    • Transaction costs
  • Risks Associated with Forex Trading
    • Country or sovereign risk
    • Credit risk
    • Exchange rate risk
    • Interest rate risk
    • Liquidity risk
    • Market risk
    • Operational risk
    • Settlement risk, Herstaat risk
  • Forex Market - Concepts, Theories, Economic Factors and Indicators, Participants
    • Balance of payments
    • Balance of trade
    • Capital account and current account
    • Central bank activities, intervention, sterilized intervention
    • Discount rate
    • Economic indicators: employment, consumer spending, income, industrial and inflation
    • Elasticity of exchange rates
    • Exchange rate volatility
    • Federal Reserve Board
    • Fiscal policy
    • Fisher effect
    • Foreign investment indicators
    • Gross national product, gross domestic product
    • Inflation
    • Interbank funds transfer and settlement systems
    • International Monetary Fund
    • Role of central banks
    • Theory of elasticities
    • Theory of purchasing power parity
    • World Trade Organization
  • Forex Regulatory Requirements
    • Close out of offsetting positions
    • Disclosure of profitable vs. non-profitable accounts
    • Prohibition of guarantees against loss
    • Registration requirements
    • Re-quoting
    • Security deposits
    • Specific authorization for trades
    • CFTC jurisdiction and jurisdictional limitations
    • Conflicts of interest
    • Disclosures to customers
    • Jurisdictional & regulatory framework
    • Know your customer
    • NFA Interpretive Notices
    • NFA membership and associate membership requirements
    • Promotional material & solicitation
    • Reports to customers, confirmations, monthly summaries
    • Security deposit rules
    • Security of customer funds, no segregation
Examination sources