Futures Trading

Are you looking for your next job as a Future Trader. Checkout these interview questions in Futures Trading to help you for your next job preparation.

Q.1 What is Performance Bond Call Program in Futures And Options Trading Market?
In Futures and Options Trading Market, Performance Bond Call Program refers to the demand for additional funds because of adverse price movement.
Q.2 What Is Forward (cash) Contract?
Forward (Cash) Contract refers to the cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts are privately negotiated and are not standardized.
Q.3 What is Position Trading?
Position Trading is an approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time.
Q.4 How should we declare Select-option as a Parameter?
Call Option is an option that gives the buyer the right, but not the obligation, to purchase the underlying futures contract at the strike price on or before the expiration date.
Q.5 What is Loan Rate?
Loan Rate is the amount lent per unit of a commodity to farmers.
Q.6 What is the main characteristic of forward market?
Parties exposed to credit risk
Q.7 What defines a futures contract
A marketable obligation to buy or sell a specified quantity of a particular asset during a given period for a given price.
Q.8 What is the characteristic of a liquid asset
It can be converted into cash with little chance of loss
Q.9 What is meant by forward market?
The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange.
Q.10 What is difference between future and forward?
Futures contracts are traded on exchanges, making them standardized contracts. Forward contracts are private agreements between two parties to buy and sell an asset at a specified price in the future.
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