Futures Test

1. Why is tick value important?

It helps calculate profit and loss It removes margin requirements It prevents volatility It guarantees winning trades

2. Can futures traders profit from falling prices?

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

3. Which futures month code represents March?

M H U Z

4. What does NQ represent?

Natural gas only New York bond Net quote Nasdaq futures

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

Energy futures Agricultural futures Stock index futures Currency futures

6. Why do companies use futures for hedging?

To protect against unfavorable price changes To guarantee unlimited profit To avoid all business costs To eliminate taxes

7. What is risk-to-reward ratio?

A broker password A comparison of potential loss to potential gain A futures month code A contract size

8. Which futures month code represents June?

F M Z H

9. What is physical delivery?

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

10. Why is position sizing important in futures?

It prevents expiration It guarantees profits It controls how much money is at risk It removes margin

11. Why is leverage risky in futures?

It guarantees income It can amplify both profits and losses It eliminates volatility It removes losses

12. What does CL represent in futures?

Call option Corn lots only Crude oil futures Crypto leverage

13. What is mark-to-market in futures?

A crypto transfer A stock dividend payment Daily adjustment of gains and losses A fixed contract price

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

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

15. What is a take-profit order?

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

16. What does it mean to roll a futures contract?

Convert futures into stocks Double the trade size Move from an expiring contract to a later contract month Cancel all losses

17. What is contract size?

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

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. What is leverage in futures trading?

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

20. What is a futures contract?

A crypto wallet A bank savings account An agreement to buy or sell an asset at a set price on a future date A company share

21. What is a market order?

An order that guarantees profit An order to buy or sell immediately at the best available price A tax order A dividend request

22. What is tick value?

The dollar value of one tick movement A tax refund A dividend rate A password value

23. What is margin in futures trading?

Money required to open and maintain a futures position A broker’s email address A company’s profit A tax form

24. What does GC represent in futures?

Growth company Gas contract General currency Gold futures

25. What is maintenance margin?

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