Futures Test

1. What is cash settlement?

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

2. What does CL represent in futures?

Crypto leverage Call option Crude oil futures Corn lots only

3. What is the main danger of futures trading?

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

4. What is maintenance margin?

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

5. What does ESZ4 mean?

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

6. Why do most retail futures traders close before expiration?

To receive free contracts To avoid market hours To avoid settlement or delivery issues To guarantee profit

7. 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

8. What is settlement in futures?

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

9. What is risk-to-reward ratio?

A futures month code A contract size A broker password A comparison of potential loss to potential gain

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

Metals Agriculture Stock indexes Currencies

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

USD Checking AAPL ES BTC Wallet

12. Which futures month code represents June?

F Z H M

13. What is a take-profit order?

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

14. What is a short futures position?

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

15. What is a market order?

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

16. What is a long futures position?

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

17. What is margin in futures trading?

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

18. What is volume in futures?

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

19. Why do traders prefer liquid futures contracts?

They never expire They guarantee profits They usually have tighter spreads and better execution They remove risk

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

Stock index futures Energy futures Currency futures Agricultural futures

21. What is a stop-loss order?

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

22. What is tick size?

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

23. Why is leverage risky in futures?

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

24. Which futures month code represents December?

Z K H N

25. What is initial margin?

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