Practice Set - 1 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

If a trader buys futures and price rises, the gain is credited via:

Question 2

Margin in futures trading is primarily used to:

Question 3

Daily price limits in futures markets are used to:

Question 4

Which of the following increases risk in futures trading?

Question 5

Which of the following is NOT a feature of futures contracts?

Question 6

If basis is negative, market is likely in:

Question 7

Open interest refers to:

Question 8

A long position in futures means:

Question 9

Basis is defined as:

Question 10

Settlement price is determined by:

Question 11

Futures contracts always result in physical delivery.

Question 12

Which of the following affects futures prices?

Question 13

Which of the following is true for futures contracts?

Question 14

In futures trading, initial margin is paid only once and never adjusted.

Question 15

A trader expecting price rise should:

Question 16

Higher open interest indicates:

Question 17

Hedging using futures reduces risk completely.

Question 18

Tick size represents:

Question 19

A futures contract is best described as:

Question 20

Short position in futures benefits when prices:

Question 21

Both buyer and seller in a futures contract have obligations.

Question 22

Futures contracts are primarily used for:

Question 23

Which participant guarantees settlement in futures markets?

Question 24

A trader rolls over a futures position to:

Question 25

Contract size in futures refers to:

Question 26

Leverage increases both profit and loss potential.

Question 27

Volume in futures market represents:

Question 28

Mark-to-market (MTM) settlement occurs:

Question 29

If price falls after taking long position, trader incurs:

Question 30

Futures price convergence means:

Question 31

Futures trading provides liquidity to markets.

Question 32

Futures contracts eliminate counterparty risk completely.

Question 33

A decrease in margin requirement will:

Question 34

Leverage in futures trading allows:

Question 35

Practice Set - 1