Futures Trading Quiz – Basics of Futures Trading for Beginners

1: Its an agreement between buyer and seller to deliver quantity at a price lower than the market value.

2: Its an agreement between two brokers market participants to deliver quantity at a certain price.

3: Its an agreement between two anonymous market participants to deliver quantity at a certain price at specified future date.

4: Its an agreement between two market participants to deliver quantity at a traded market price.

Its an agreement between two anonymous market participants to deliver quantity at a certain price at specified future date.

1: Stock Future Contracts.

2: Commodities Future Contracts.

3: Index Future Contracts.

4: Currency Future Contracts.

5: All of the Above.

All of the Above.

1: Hedger Traders.

2: Investors.

3: Foreign Traders.

4: All of the Above.

All of the Above.

1: Allows traders to take much positions without cash balance.

2: Allows traders to take large positions above their cash balance in the account.

3: Allows traders to take larger positions through insider trading.

4: Allows traders to take much larger positions than are normally available from your cash balance.

Allows traders to take much larger positions than are normally available from your cash balance.

1: Payoffs are squaring off the position due to insufficient balance.

2: Payoffs are the monetary awards given for a varieties of reasons.

3: Payoffs are write-off obligation for the seller of the future contract.

4: Payoffs are paying remaining cash balance required for futures trading.

Payoffs are the monetary awards given for a varieties of reasons.

1: Its an act of selling at higher value and later buying after price fall.

2: Its an act of selling at lower value and later buying at higher price.

3: Its an act of buying at higher value and later selling after price fall.

4: Its an act of buying at lower value and later selling at higher price.

Its an act of selling at higher value and later buying after price fall.

1: One of the frequently traded instrument in American derivative market.

2: One of the frequently traded instrument in Germany derivative market.

3: One of the frequently traded instrument in Indian derivative market.

4: One of the frequently traded instrument in Singapore derivative market.

One of the frequently traded instrument in Indian derivative market.

1: Hedging is a trading strategy for financial market during bearish trend.

2: Hedging is a risk protection strategy for financial market during volatility trend.

3: Hedging is a buyers protection strategy for financial market during volatility and bearish trend.

4: All of the Above.

Hedging is a risk protection strategy for financial market during volatility trend.

1: The Open interest is the total number of options or futures contracts that have not been closed or released on a particular day.

2: The Open interest is the total number of options or futures contracts that are closed or released on a particular day.

3: The Open interest is the total number of options or futures contracts indicating the volume of the trade on a particular day.

4: All of the Above.

The Open interest is the total number of options or futures contracts that have not been closed or released on a particular day.

1: Mark to market (M2M) or Marking to market is a procedure which tells your profit or loss on monthly basis as long you hold the futures contract.

2: Mark to market (M2M) or Marking to market is a procedure which adjusts your profit or loss on the basis of volume traded as long you hold the futures contract.

3: Mark to market (M2M) or Marking to market is a procedure which adjusts your profit or loss on day to day basis as long you hold the futures contract.

4: All of the Above.

Mark to market (M2M) or Marking to market is a procedure which adjusts your profit or loss on day to day basis as long you hold the futures contract.

1: Currency Market.

2: Stock Futures.

3: Stock Market.

4: Commodities Futures.

5: All of the Above.

Stock Futures.

1: Offset.

2: Payoff.

3: Open Interest.

4: All of the Above.

Offset.

1: Total number of contracts available for buy / sell.

2: Price of the underlying financial security.

3: Size – the Lot size of the underlying item of the contract.

4: All of the Above.

Size – the Lot size of the underlying item of the contract.

1: Long Positions.

2: Short Positions.

3: All of the Above.

All of the Above.