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Learn to trade with Rockwell Trading
 

Test Your Knowledge

#1 Margin in a futures account is a:
Good Faith Deposit
Cash Balance
Position

#2 A "stop" order cannot be used to initiate a position .
True
False

#3 A hypothetical futures market is now at 100.  A trader wishes to go long at 105.
The order should read:
A buy limit at 105
A sell stop at 110
A buy stop at 105
A buy MIT at 105

#4 Open Interest and Volume are interchangeable.
True
False

#5 No trading is allowed when a market is limit up or limit down.
True
False

#6 If initial margin for corn is $540, and maintenance margin is $400, then total margin is $940.
True
False

#7 The term, "open order," refers to an existing long or short position held in a customer's account.
True
False

#8 You buy an S&P500© 1500 call for $100 and you sell an S&P500© 1600 put for $101.
This is called a:
Credit Spread
Debit Spread

#9 You short one at-the-money S&P500© put.  You believe that the market will:
Rise
Fall

#10 Bonds are trading at 101-16.  The value of the contract is:
$100,000
$101,500
$101,160
$1,101,600

 



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