Futures Test

1. What is the underlying asset in a futures contract?

A broker password A stock dividend The asset the contract is based on A tax document

2. What does NQ represent?

Nasdaq futures New York bond Net quote Natural gas only

3. Why do most retail futures traders close before expiration?

To guarantee profit To receive free contracts To avoid market hours To avoid settlement or delivery issues

4. What is open interest in futures?

A company loan The broker’s interest rate The dividend schedule The number of outstanding futures contracts not yet closed

5. What is a short futures position?

Buying a contract expecting price to rise Selling a contract expecting price to fall Opening a savings account Buying a dividend stock

6. What is contract size?

The size of a broker website A trader’s account password The number of trading days The amount of the underlying asset represented by one futures contract

7. What is leverage in futures trading?

Guaranteed profit Controlling a large contract value with smaller margin A savings account A fixed price forever

8. What is a limit order?

An order to avoid all losses A futures expiration An order to buy or sell at a specific price or better A broker login

9. What does hedging mean in futures?

Trying to guarantee profit Buying only stocks Avoiding all investing Reducing risk from price changes

10. Which category includes S&P 500 and Nasdaq futures?

Stock index futures Agricultural futures Currency futures Energy futures

11. What is a take-profit order?

A market holiday An order designed to close a trade at a target profit A margin call A tax payment

12. What is liquidity in futures trading?

A tax refund How easily contracts can be bought or sold A broker password How much water a company has

13. Why were futures originally created?

To eliminate markets To replace stocks To help producers and buyers hedge price risk To avoid all losses

14. Which futures month code represents September?

U Z G M

15. What is a margin call?

A stock dividend A guaranteed profit alert A demand for more funds when account equity falls too low A broker advertisement

16. Which futures month code represents March?

U H Z M

17. Who trades futures?

Only farmers Only crypto traders Hedgers, institutions, funds, and retail traders Only banks

18. What is settlement in futures?

The process of closing or fulfilling the contract A dividend payment A broker password reset A crypto wallet backup

19. Why do traders prefer liquid futures contracts?

They never expire They remove risk They guarantee profits They usually have tighter spreads and better execution

20. Can futures traders profit from falling prices?

Only banks can do that No, only stocks can fall No, futures only rise Yes, by going short

21. What is cash settlement?

Settling the contract with money instead of delivering the physical asset Getting a tax refund Receiving company shares Paying with physical gold

22. What is maintenance margin?

A stock split A contract symbol The minimum account balance required to keep a position open The trade entry fee only

23. What is slippage?

When execution price differs from expected price A tax refund A futures symbol A guaranteed profit

24. What does GC represent in futures?

General currency Growth company Gas contract Gold futures

25. What is physical delivery?

Receiving a dividend Getting a broker email Buying an ETF Delivery of the actual underlying commodity