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. What is mark-to-market in futures? Daily adjustment of gains and losses A fixed contract price A crypto transfer A stock dividend payment 2. What is a market order? An order to buy or sell immediately at the best available price A dividend request An order that guarantees profit A tax order 3. What is contract size? A trader’s account password The number of trading days The amount of the underlying asset represented by one futures contract The size of a broker website 4. Can futures traders profit from falling prices? Yes, by going short No, futures only rise Only banks can do that No, only stocks can fall 5. Which category includes gold and silver futures? Metals Stock dividends Agriculture Currencies 6. What is a long futures position? Buying a contract expecting price to rise Avoiding all trades Owning a stock dividend Selling a contract expecting price to fall 7. What is tick value? A tax refund The dollar value of one tick movement A password value A dividend rate 8. What is the main danger of futures trading? Contracts never expire Margins are always free Large losses can happen quickly because of leverage There is no price movement 9. What is risk-to-reward ratio? A contract size A comparison of potential loss to potential gain A futures month code A broker password 10. 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 11. What does GC represent in futures? Growth company General currency Gold futures Gas contract 12. Why is leverage risky in futures? It guarantees income It removes losses It can amplify both profits and losses It eliminates volatility 13. What does ES represent? European stock only E-mini S&P 500 futures Energy savings account Ethereum spot trading 14. Who trades futures? Only farmers Only banks Only crypto traders Hedgers, institutions, funds, and retail traders 15. Which futures month code represents December? H K Z N 16. Which of these is a stock index futures contract? AAPL USD Checking BTC Wallet ES 17. Why should futures traders understand contract specifications? Because specs guarantee profit Because each contract has different tick size, tick value, and expiration Because brokers hide all prices Because all futures are the same 18. What does hedging mean in futures? Buying only stocks Avoiding all investing Trying to guarantee profit Reducing risk from price changes 19. What is leverage in futures trading? A fixed price forever A savings account Controlling a large contract value with smaller margin Guaranteed profit 20. Which futures month code represents September? G U Z M 21. Why do most retail futures traders close before expiration? To receive free contracts To guarantee profit To avoid settlement or delivery issues To avoid market hours 22. Which category includes corn, wheat, and soybeans? Agriculture Stock indexes Currencies Metals 23. What is initial margin? The amount required to open a futures position The profit target The broker password The dividend payment 24. What is slippage? A tax refund A futures symbol A guaranteed profit When execution price differs from expected price 25. Why were futures originally created? To eliminate markets To replace stocks To help producers and buyers hedge price risk To avoid all losses Submit Test
