Quiz | IG South Africa

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Question 1 of 10

For the currency pair USD/JPY, a pip represents a one-digit movement in which decimal place?

A First
B Second
C Third
D Fourth

Explanation

In most cases, when the Japanese yen (JPY) is the counter currency, the second decimal place is the one to watch.

Question 2 of 10

Company QER is currently worth £5,000,000 and 10,000,000 shares have been issued. How much is one share worth in pence?

A 5p
B 20p
C 50p
D 200p

Explanation

The value of one share is the total company value divided by the number of shares issued. £5,000,000 ÷ 10,000,000 = £0.50 or 50p.

Question 3 of 10

Index DEF is capitalisation-weighted and represents the value of the following three stocks: - Company D has a share price of £5 with 200 shares issued - Company E has a share price of £2 with 1000 shares issued - Company F has a share price of £4 with 500 shares issued What is the value of Index DEF in pounds?

A £3000
B £400
C £4000
D £5000

Explanation

A capitalisation-weighted index takes the size of each company into account when calculating the value of the index as a whole:
(£5 x 200) + (£2 x 1000) + (£4 x 500)
= £1000 + £2000 + £2000
= £5000

Question 4 of 10

Which of the following isn't a commodity futures exchange?

A London International Financial Futures and Options Exchange (LIFFE)
B London Metal Exchange
C OMX Nordic Exchange
D New York Mercantile Exchange

Explanation

OMX Nordic Exchange is a stock exchange group based in Stockholm.

Question 5 of 10

Match the stock index to its corresponding country:

Clear

Explanation

FTSE 100 -> UK
DAX -> Germany
CAC 40 -> France
IBEX 35 -> Spain
Nikkei 225 -> Japan

Question 6 of 10

Match the following stock exchanges to their respective country:

Clear

Explanation

SIX -> Switzerland
LSE -> UK
NASDAQ -> USA
ASX -> Australia
TSX -> Canada

Question 7 of 10

Which of the following would be classed as 'hard' commodities?

Please select all answers that apply

Gold
Nickel
Barley
Heating Oil

Explanation

Hard commodities are generally mined from the ground, or taken from other natural resources, while barley is a farmed crop, so is classed as a 'soft' or 'agricultural' commodity.

Question 8 of 10

You decide to buy A$10,000 of AUD/USD at 0.74000, which costs you $7400. A few weeks later the sell price stands at 0.72000. If you close your position at 0.72000, how much profit/loss will you make in USD (not counting any charges or commission payments)?

A $200 loss
B $200 profit
C $2000 profit
D $2000 loss

Explanation

By buying this currency pair you expected the Australian dollar to strengthen against the US dollar. However, in this scenario it got weaker, with you paying $7400 to open the trade, but selling for $7200. This cost you $200.

Question 9 of 10

The size of one contract of Brent Crude oil is 1000 barrels. Let's say it's currently trading at $70 per barrel, and you decide to buy three contracts costing you $210,000 ($70 x 3000 barrels). Later, the price of Brent Crude is listed at $50 per barrel and you decide to close your position. How much profit/loss have you made (ignoring any charges or commission payments)?

A $60,000 profit
B $6000 loss
C $60,000 loss
D $600,000 profit

Explanation

You paid $210,000 but could only sell for $150,000. That means you'd have lost $60,000 in total ($210,000 - $150,000).

Question 10 of 10

Forex is traded in standard lots. How many units of currency does a standard lot represent?

A 1
B 10,000
C 100,000
D 10

Explanation

A standard lot is 100,000 units of currency. A mini lot represents 10,000 units, while a micro lot represents 1000.

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IG is a trading name of IG Markets Limited and IG Markets South Africa Limited. IG Markets South Africa Limited offers domestic accounts and IG Markets Limited offers international accounts.

IG Markets South Africa Limited is authorised and regulated by the Financial Sector Conduct Authority (in South Africa) as an over-the-counter derivative provider and an authorised financial services provider (FSP No 41393). IG Markets Limited is authorised and regulated by the Financial Conduct Authority (in the UK).

IG provides execution only services and enters into principal-to-principal transactions with its clients on IG’s prices. Such trades are not on exchange. Whilst IG Markets South Africa Limited is a regulated FSP and acts as an intermediary as understood in the FAIS Act in relation to the international accounts offered by IG Markets Limited, CFDs issued by IG are not regulated by the FAIS Act as they are undertaken on a principal-to-principal basis. CFDs issued by IG Markets South Africa Limited are regulated by the Financial Markets Act, and IG Markets South Africa Limited is a licenced over-the-counter derivative provider.

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Welcome to the quiz

For the currency pair USD/JPY, a pip represents a one-digit movement in which decimal place?

Explanation

Company QER is currently worth £5,000,000 and 10,000,000 shares have been issued. How much is one share worth in pence?

Explanation

Explanation

Which of the following isn't a commodity futures exchange?

Explanation

Match the stock index to its corresponding country:

Explanation

Match the following stock exchanges to their respective country:

Explanation

Which of the following would be classed as 'hard' commodities?

Explanation

You decide to buy A$10,000 of AUD/USD at 0.74000, which costs you $7400. A few weeks later the sell price stands at 0.72000. If you close your position at 0.72000, how much profit/loss will you make in USD (not counting any charges or commission payments)?

Explanation

Explanation

Forex is traded in standard lots. How many units of currency does a standard lot represent?

Explanation

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