WHAT IS THE DIFFERENCE BETWEEN THE EXPECTED COST (OR PRICE) OF A TRANSACTION AND THE AMOUNT ACTUALLY PAID?

A. MARGIN C. SLIPPAGE

B. ROLLOVER D. LIMIT ORDER

24. WHAT DO YOU MEAN BY FUTURES TRADING?

A. IT IS A STANDARDIZED CONTRACTS THAT SAY HOW MUCH OF A SPECIFIED COMMODITY CAN BE PURCHASED OR SOLD AT A PREDETERMINED PRICE AND AT A SPECIFIED TIME IN THE FUTURE. B. IT IS A PARAMOUNT OF ANY TRADING STRATEGY. C. IT IS DEFINED AS THE SMALLEST PRICE CHANGE THAT A CURRENCY CAN MOVE. D. IT IS SOMETIMES KNOWN AS AN UNRESTRICTED ORDER, IS AN ORDER TO BUY OR SELL AT THE BEST AVAILABLE PRICE. THEY CAN BE USED FOR EXITING OR ENTERING A TRADE.

WHAT IS THE DEFINITION OF CONTRACT IN NOTABLE FUTURES TERMS?

A. SET BY THE EXCHANGE, THIS IS THE AMOUNT OF A COMMODITY CONTROLLED FOR 1 CONTRACT. B. A STANDARDIZED AGREEMENT BETWEEN TWO PARTIES DETAILING THE QUALITY, AND QUANTITY OF AN UNDERLYING ASSET ON A DATE IN THE FUTURE. C. SIMULTANEOUS BUYING AND SELLING OF AN ASSET TO PROFIT FROM A DISCREPANCY IN PRICES. THIS MAY ALSO INCLUDE SOME ASPECTS OF HEDGING. D. A FINANCIAL INSTRUMENT WHERE THE PRICE IS DIRECTLY DEPENDENT UPON (I.E., DERIVED FROM) THE VALUE OF ANOTHER FINANCIAL INSTRUMENT(S). WHEN TRADING DERIVATIVES, THERE IS NO TRANSFER OF PROPERTY.

WHAT IS THE DEFINITION OF ARBITRAGE IN NOTABLE FUTURES TERMS?

A. SET BY THE EXCHANGE, THIS IS THE AMOUNT OF A COMMODITY CONTROLLED FOR 1 CONTRACT. B. A STANDARDIZED AGREEMENT BETWEEN TWO PARTIES DETAILING THE QUALITY, AND QUANTITY OF AN UNDERLYING ASSET ON A DATE IN THE FUTURE. C. SIMULTANEOUS BUYING AND SELLING OF AN ASSET TO PROFIT FROM A DISCREPANCY IN PRICES. THIS MAY ALSO INCLUDE SOME ASPECTS OF HEDGING. D. A FINANCIAL INSTRUMENT WHERE THE PRICE IS DIRECTLY DEPENDENT UPON (I.E., DERIVED FROM) THE VALUE OF ANOTHER FINANCIAL INSTRUMENT(S). WHEN TRADING DERIVATIVES, THERE IS NO TRANSFER OF PROPERTY.

WHAT IS THE DEFINITION OF HEDGING IN NOTABLE FUTURES TERMS?

A. A DEALER WHO HAS AN OBLIGATION TO BUY WHEN THERE IS AN EXCESS OF SELL ORDERS AND TO SELL WHEN THERE IS AN EXCESS OF BUY ORDERS.

B. A STANDARDIZED AGREEMENT BETWEEN TWO PARTIES DETAILING THE QUALITY, AND QUANTITY OF AN UNDERLYING ASSET ON A DATE IN THE FUTURE. C. TAKING OFFSETTING POSITIONS USUALLY IN TWO DIFFERENT MARKETS TO MINIMIZE THE RISK OF FINANCIAL LOSS.

D. A FINANCIAL INSTRUMENT WHERE THE PRICE IS DIRECTLY DEPENDENT UPON THE VALUE OF ANOTHER FINANCIAL INSTRUMENT(S). WHEN TRADING DERIVATIVES, THERE IS NO TRANSFER OF PROPERTY.

WHAT IS YOUR UNDERSTANDING OF A TRADING PIT IN FUTURES TRADING?

A. ALSO CALLED A RING, THIS IS AN ARENA ON THE TRADING FLOOR OF SOME EXCHANGES WHERE TRADING IS CONDUCTED.

B. A DAILY CASH FLOW SYSTEM USED FOR A FUTURES CONTRACT TO MAINTAIN A MINIMUM LEVEL OF MARGIN EQUITY THAT IS CALCULATED AT THE END OF EACH TRADING DAY.

C. THE AVERAGE CHANGE IN PRICE UP OR DOWN. D. THE PRICE AT WHICH A PHYSICAL COMMODITY FOR IMMEDIATE DELIVERY IS SELLING AT A GIVEN TIME AND PLACE.

WHAT IS THE MEANING OF FUTURES COMMISSION MERCHANT (FCM)?

A. IT IS MADE UP OF VARIOUS TRADING PARTICIPANTS, REGULATORY BODIES, EXCHANGES AND EXECUTION METHODS, ALL PLAYING AN ESSENTIAL ROLE FOR A LIQUID AND FUNCTIONAL MARKET. B. A BROKER OR BROKERAGE FROM THAT EXECUTES ORDERS ON BEHALF OF TRADERS (CLIENTS) AS WELL AS EXTENDS CREDIT TO THEM FOR MARGINED TRANSACTIONS. THEY ALSO HOLD CLIENT FUNDS AS WELL.

C. AN EXCHANGE MEMBER WHO EXECUTES TRADES ON THE EXCHANGE FLOOR TYPICALLY FOR HIS OR HER OWN ACCOUNT. ALSO KNOWN AS LOCALS. D. AN EMPLOYEE OF A MEMBER FROM WHO EXECUTES TRADES ON THE EXCHANGE FLOOR ON BEHALF OF THE FORMS CLIENTS.