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.

If a market participant is bullish he thinks:

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

What does FX stand for?

Market makers are:

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

Continuous trading offers:

How many transactions are required to lock in profit in the sense of arbitrage in the currency markets?

What is a futures contract?

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?

Company A buys a commodity future with a maturity of 12 months at $40.00. A day later the future trades at $43.00. How much additional initial margin does A have to deposit?