Futures Test

1. What is initial margin?

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

2. What does ESZ4 mean?

Energy stock option A tax document E-mini S&P 500 futures expiring in December 2024 Ethereum spot coin

3. What does hedging mean in futures?

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

4. What does ES represent?

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

5. Why is tick value important?

It removes margin requirements It guarantees winning trades It helps calculate profit and loss It prevents volatility

6. What is cash settlement?

Paying with physical gold Getting a tax refund Receiving company shares Settling the contract with money instead of delivering the physical asset

7. What does NQ represent?

New York bond Net quote Nasdaq futures Natural gas only

8. Why is position sizing important in futures?

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

9. What is contract expiration?

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

10. What is settlement in futures?

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

11. What is a long futures position?

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

12. Why should futures traders understand contract specifications?

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

13. What is a limit order?

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

14. What is open interest in futures?

The number of outstanding futures contracts not yet closed The dividend schedule The broker’s interest rate A company loan

15. What is liquidity in futures trading?

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

16. Which category includes S&P 500 and Nasdaq futures?

Agricultural futures Energy futures Stock index futures Currency futures

17. What does CL represent in futures?

Crude oil futures Call option Corn lots only Crypto leverage

18. What is volume in futures?

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

19. What is a short futures position?

Opening a savings account Buying a contract expecting price to rise Selling a contract expecting price to fall Buying a dividend stock

20. What is a market order?

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

21. What is a stop-loss order?

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

22. What is contract size?

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

23. What is tick value?

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

24. Why do companies use futures for hedging?

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

25. What is a margin call?

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