Test your knowledge: Trading – Basic level

Test your knowledge about trading
Knowledge related to Front Office activities not only relevant for traders, but supporting staff must also understand the business to excel.
At this basic level your knowledge is tested with respect to terminology, theory and facts.

Which of the following companies is a European commodities exchange?

What is collateral?

A market maker

What does a clearing house do when a market participant does not meet margin calls?

A trader sells a futures contract that he bought before. What kind of transaction is the sale?

A spot market:

A member of an exchange buys 5 futures contracts and then sell 7 futures and then buys 4 futures. What kind of transcation does this member have to do to net out its position?

What is an exchange?

What does EFET stand for?

Market efficiency implies: