Futures Test

1. What does GC represent in futures?

Growth company Gas contract General currency Gold futures

2. Which futures month code represents September?

Z G M U

3. What is settlement in futures?

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

4. What is volume in futures?

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

5. 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

6. Can futures traders profit from falling prices?

Only banks can do that No, futures only rise No, only stocks can fall Yes, by going short

7. Which futures month code represents June?

F Z H M

8. What is contract size?

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

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. Why is leverage risky in futures?

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

11. What is a long futures position?

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

12. What does NQ represent?

Nasdaq futures Natural gas only Net quote New York bond

13. What is physical delivery?

Buying an ETF Getting a broker email Receiving a dividend Delivery of the actual underlying commodity

14. What is maintenance margin?

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

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

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

16. What is the main danger of futures trading?

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

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

AAPL BTC Wallet USD Checking ES

18. What is tick value?

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

19. 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

20. What is margin in futures trading?

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

21. What does ES represent?

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

22. What does CL represent in futures?

Crude oil futures Call option Crypto leverage Corn lots only

23. Why were futures originally created?

To avoid all losses To eliminate markets To help producers and buyers hedge price risk To replace stocks

24. Who trades futures?

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

25. What is tick size?

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