10.2 What is Risk Capital? – Quiz

1. What’s a source of risk capital? *

Your children’s education fund

Next month’s mortgage payment

Line of credit from your bank

Some extra savings you have that haven’t been allocated for a specific purpose

2. When you trade with capital you cannot afford to lose, what can happen? *

You exit trades before they hit target worrying that it could turn into a loss

You move stop-losses against you as a you are unable to handle a loss

You worry over minor fluctuations in the value of your account

All of the above

3. If you feel you are trading with money you cannot afford to lose … *

Wait until you have doubled your account size and then pull out the original deposit

Take profits quickly to avoid them turning into losses

Reduce your account size to alevel that will let you feel comfortable

No changes to your account size or trading is necessary

4. If you are worried about how long it would take to save back up your trading capital, should you: *

Wait until you’ve made some profits and withdraw some of the original deposit

Reduce your account size so you are comfortable saving back up your original deposit should you lose it

Do nothing. It will upset the broker if you reduce your account size

Add more money to your account to increase the potential profits

5. If you deposited money in your trading account that you need to withdraw soon to pay some *

Yes ,as long as you make aprofit on it

Yes, because it is your money

No,because you cannot a fford to lose it

Perhaps ,if you can delay when you need to pay the bill

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