Futures Test Futures Trading Knowledge Test Instructions: Answer all 25 questions. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. Which category includes S&P 500 and Nasdaq futures? Currency futures Energy futures Agricultural futures Stock index futures 2. What does NQ represent? Natural gas only Nasdaq futures New York bond Net quote 3. What is liquidity in futures trading? A tax refund A broker password How easily contracts can be bought or sold How much water a company has 4. What does ESZ4 mean? Energy stock option A tax document E-mini S&P 500 futures expiring in December 2024 Ethereum spot coin 5. What is tick size? The smallest price movement a futures contract can make A chart color A company dividend The broker’s monthly fee 6. Which category includes corn, wheat, and soybeans? Stock indexes Metals Agriculture Currencies 7. What is a limit order? A futures expiration A broker login An order to avoid all losses An order to buy or sell at a specific price or better 8. Why do companies use futures for hedging? To eliminate taxes To guarantee unlimited profit To protect against unfavorable price changes To avoid all business costs 9. Why do most retail futures traders close before expiration? To avoid settlement or delivery issues To receive free contracts To guarantee profit To avoid market hours 10. What is the main danger of futures trading? Margins are always free There is no price movement Large losses can happen quickly because of leverage Contracts never expire 11. What is margin in futures trading? A tax form Money required to open and maintain a futures position A company’s profit A broker’s email address 12. What is initial margin? The profit target The amount required to open a futures position The dividend payment The broker password 13. Why is position sizing important in futures? It guarantees profits It removes margin It controls how much money is at risk It prevents expiration 14. What is a futures contract? A crypto wallet A company share An agreement to buy or sell an asset at a set price on a future date A bank savings account 15. What is tick value? A password value A tax refund A dividend rate The dollar value of one tick movement 16. Who trades futures? Only farmers Hedgers, institutions, funds, and retail traders Only crypto traders Only banks 17. What is a take-profit order? A margin call A tax payment An order designed to close a trade at a target profit A market holiday 18. What does CL represent in futures? Crypto leverage Call option Crude oil futures Corn lots only 19. What is contract size? The number of trading days The size of a broker website A trader’s account password The amount of the underlying asset represented by one futures contract 20. What does it mean to roll a futures contract? Convert futures into stocks Cancel all losses Double the trade size Move from an expiring contract to a later contract month 21. What is a market order? A dividend request A tax order An order to buy or sell immediately at the best available price An order that guarantees profit 22. 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 23. Which futures month code represents March? Z M U H 24. 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 25. What is physical delivery? Getting a broker email Buying an ETF Receiving a dividend Delivery of the actual underlying commodity Submit Test