Futures Test

1. Why do traders prefer liquid futures contracts?

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

2. What is tick size?

A chart color A company dividend The smallest price movement a futures contract can make The broker’s monthly fee

3. What is contract expiration?

The date a stock pays dividends The date a broker closes forever The date taxes are due The date when a futures contract ends or must be settled or rolled

4. What is margin in futures trading?

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

5. What is a limit order?

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

6. What is physical delivery?

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

7. Why should futures traders understand contract specifications?

Because brokers hide all prices Because each contract has different tick size, tick value, and expiration Because all futures are the same Because specs guarantee profit

8. What is liquidity in futures trading?

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

9. What does hedging mean in futures?

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

10. What is a market order?

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

11. What is leverage in futures trading?

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

12. What is a margin call?

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

13. What does ES represent?

European stock only E-mini S&P 500 futures Ethereum spot trading Energy savings account

14. What is a futures contract?

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

15. Which category includes crude oil and natural gas futures?

Healthcare Technology Energy Consumer Staples

16. What is tick value?

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

17. Which category includes corn, wheat, and soybeans?

Agriculture Stock indexes Metals Currencies

18. What is a long futures position?

Buying a contract expecting price to rise Avoiding all trades Owning a stock dividend Selling a contract expecting price to fall

19. What does GC represent in futures?

General currency Gas contract Gold futures Growth company

20. Which futures month code represents June?

M F H Z

21. What is contract size?

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

22. Which futures month code represents December?

Z N H K

23. Which category includes gold and silver futures?

Stock dividends Metals Currencies Agriculture

24. What does CL represent in futures?

Crude oil futures Crypto leverage Corn lots only Call option

25. What does NQ represent?

Natural gas only Net quote Nasdaq futures New York bond