CFD’s Trading and Terms Quiz 2 Created on December 16, 2020 By Eddie Vorman CFD’s Trading and Terms Quiz CFD’s trading offers many advantages. However, it differs from traditional trading, operating with its own terms and rules. How well do you know this world? Are you confident in your knowledge? Here's your chance to find out! 1 / 7 When the trader is protecting himself against future price changes by shifting some or all of the risk to someone else, this process is called: Hedging Investing Speculating Gambling 2 / 7 The amount of cash put up by an investor, which is just a fraction of the value the asset, is called: Long position Margin Short position Fractional reserve 3 / 7 If the people bet on price changes in the hope of making a profit, they are called: Gamblers Hedgers Speculators Investors 4 / 7 When a trader is borrowing a security and then selling it with the hope of buying it back later at a cheaper price, this procees is called: Investing Leveraging Gambling Short-selling 5 / 7 What is called an agreement to accept or make delivery of an asset on a particular future date at a price struck today? Spot Contract Cash Contract Futures Contract Margin 6 / 7 Which of the following is not common with both futures contracts and forward contracts? Both of them have the buyer taking future delivery of the assets in question Both of them are used for hedging Both of them deal in durable goods Both of them require estimates of the future by participants 7 / 7 The differential between the futures price and the spot price is known as: The Differential Rate The Spread The Basis The Gap Your score isThe average score is 43% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Support Platform Spread Trading Instrument Comments Rating 0 (0 reviews)
