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.

What is required before you can send an order to an exchange?



Which of the following companies is NOT a brokerage firm?



A member of an exchange buys 6 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 the position of a member of an exchange when this member buys 5 futures contracts and then sells 3 of the same contracts?



Liquidating a short position requires a:



The combination of the highest bid and lowest offer is called:



When the exchange opens its market the opening price is often set by:



Which of the following is NOT a derivatives contract:



The forward market is the market in which transactions are concluded which:



What is a derivative?