Futures Test Futures Trading Knowledge Test Instructions: Answer all 25 questions. Each question is worth 4 points. Total score: 100 points. Attempt Limit: You may take this test up to 3 times using the same email address. Student Name Student Email 1. Which futures month code represents March? Z M U H 2. Why do companies use futures for hedging? To protect against unfavorable price changes To avoid all business costs To guarantee unlimited profit To eliminate taxes 3. What is risk-to-reward ratio? A contract size A futures month code A broker password A comparison of potential loss to potential gain 4. What is a margin call? A stock dividend A guaranteed profit alert A broker advertisement A demand for more funds when account equity falls too low 5. What is a take-profit order? A margin call An order designed to close a trade at a target profit A tax payment A market holiday 6. Which category includes S&P 500 and Nasdaq futures? Stock index futures Agricultural futures Energy futures Currency futures 7. What does it mean to roll a futures contract? Convert futures into stocks Double the trade size Cancel all losses Move from an expiring contract to a later contract month 8. Why is position sizing important in futures? It controls how much money is at risk It prevents expiration It removes margin It guarantees profits 9. What does NQ represent? Net quote Natural gas only New York bond Nasdaq futures 10. Which futures month code represents September? M G Z U 11. What is leverage in futures trading? A savings account A fixed price forever Controlling a large contract value with smaller margin Guaranteed profit 12. What is mark-to-market in futures? A crypto transfer A fixed contract price Daily adjustment of gains and losses A stock dividend payment 13. What is initial margin? The dividend payment The amount required to open a futures position The profit target The broker password 14. Which of these is a stock index futures contract? ES BTC Wallet USD Checking AAPL 15. Who trades futures? Only banks Only farmers Hedgers, institutions, funds, and retail traders Only crypto traders 16. What is contract expiration? The date taxes are due The date when a futures contract ends or must be settled or rolled The date a stock pays dividends The date a broker closes forever 17. 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 18. Which futures month code represents December? Z H K N 19. What does ES represent? Energy savings account European stock only Ethereum spot trading E-mini S&P 500 futures 20. 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 21. Which category includes corn, wheat, and soybeans? Stock indexes Metals Agriculture Currencies 22. What is a limit order? An order to avoid all losses A broker login A futures expiration An order to buy or sell at a specific price or better 23. What is a long futures position? Selling a contract expecting price to fall Owning a stock dividend Avoiding all trades Buying a contract expecting price to rise 24. Which category includes gold and silver futures? Agriculture Metals Stock dividends Currencies 25. What is volume in futures? The dividend amount The number of contracts traded during a period The company’s revenue The broker’s account size Submit Test
