Futures Test

1. What are futures month codes used for?

To identify tax refunds To identify contract expiration months To identify broker passwords To identify dividend payments

2. 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

3. Which futures month code represents September?

G M U Z

4. Why do companies use futures for hedging?

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

5. What does hedging mean in futures?

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

6. 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

7. Who trades futures?

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

8. What is maintenance margin?

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

9. What is contract size?

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

10. What is the main danger of futures trading?

Contracts never expire Margins are always free There is no price movement Large losses can happen quickly because of leverage

11. What is slippage?

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

12. What is a take-profit order?

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

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

Metals Agriculture Stock indexes Currencies

14. What is contract expiration?

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

15. Which futures month code represents June?

Z F M H

16. What is a market order?

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

17. What is a long futures position?

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

18. What is leverage in futures trading?

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

19. What is margin in futures trading?

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

20. What does CL represent in futures?

Crude oil futures Call option Crypto leverage Corn lots only

21. What does ES represent?

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

22. What is settlement in futures?

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

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

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

24. Which of these is a stock index futures contract?

AAPL BTC Wallet USD Checking ES

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

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