Futures Test

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