Futures Test

1. What is settlement in futures?

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

2. What is tick size?

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

3. What is the bid-ask spread?

A broker bonus The difference between buying and selling prices A tax fee The difference between gold and oil

4. What is a stop-loss order?

An order designed to limit losses if price moves against the trade A guaranteed profit order A broker fee A dividend payment

5. What is liquidity in futures trading?

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

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

Healthcare Technology Energy Consumer Staples

7. Which futures month code represents March?

U M H Z

8. What is margin in futures trading?

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

9. Why do companies use futures for hedging?

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

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

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

11. Who trades futures?

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

12. What is maintenance margin?

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

13. Why should futures traders understand contract specifications?

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

14. Which futures month code represents June?

M H Z F

15. What is initial margin?

The profit target The broker password The dividend payment The amount required to open a futures position

16. Which category includes gold and silver futures?

Metals Stock dividends Currencies Agriculture

17. What is volume in futures?

The dividend amount The broker’s account size The company’s revenue The number of contracts traded during a period

18. Why is position sizing important in futures?

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

19. What is a futures contract?

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

20. Can futures traders profit from falling prices?

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

21. Why is leverage risky in futures?

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

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

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

23. What is leverage in futures trading?

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

24. Which futures month code represents September?

G Z U M

25. Why were futures originally created?

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