CEX Quiz Answers 1 December 2024
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Task: When and How to Use Short Positions in Trading
1. Why is technical analysis important for short orders?
– It helps identify trends and resistance levels.
2. What do you need to profit from a short order?
– A decrease in the asset’s price.
3. What’s a key risk management tool when shorting?
– Stop-loss.
4. Why should beginners start with smaller positions?
– To minimize risks and learn how shorting works.
5. What is a short order?
– Selling a borrowed asset expecting its price to drop.
6. Which of the following situations is a good time to consider shorting?
– When negative news affects market confidence.
7. What type of market trend is ideal for short orders?
– A downtrend.
8. Why is analysis important before opening a long order?
– It helps you make informed decisions about price trends.
9. What does leverage do in margin trading?
– Increases both potential profit and risk.
10. What’s the most important mindset when starting trading?
– Learn, analyze, and experiment.
11. What should traders monitor when holding a short order?
– Market trends and their stop-loss levels.
12. What does leverage do in margin trading?
– Amplifies both potential profits and risks
13. In trading, who handles the borrowing process for short orders?
– The trading platform.
14. What is one cost associated with shorting?
– Borrowing fees for holding the position.
15. What is the main goal of a short order?
– To sell high and buy back low
Open CEX IO Bot: https://t.me/cexio_tap_bot?start=1726737471260929
#CEXQuiz #CEXIOQuiz
Task: When and How to Use Short Positions in Trading
1. Why is technical analysis important for short orders?
– It helps identify trends and resistance levels.
2. What do you need to profit from a short order?
– A decrease in the asset’s price.
3. What’s a key risk management tool when shorting?
– Stop-loss.
4. Why should beginners start with smaller positions?
– To minimize risks and learn how shorting works.
5. What is a short order?
– Selling a borrowed asset expecting its price to drop.
6. Which of the following situations is a good time to consider shorting?
– When negative news affects market confidence.
7. What type of market trend is ideal for short orders?
– A downtrend.
8. Why is analysis important before opening a long order?
– It helps you make informed decisions about price trends.
9. What does leverage do in margin trading?
– Increases both potential profit and risk.
10. What’s the most important mindset when starting trading?
– Learn, analyze, and experiment.
11. What should traders monitor when holding a short order?
– Market trends and their stop-loss levels.
12. What does leverage do in margin trading?
– Amplifies both potential profits and risks
13. In trading, who handles the borrowing process for short orders?
– The trading platform.
14. What is one cost associated with shorting?
– Borrowing fees for holding the position.
15. What is the main goal of a short order?
– To sell high and buy back low
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