General Trading Knowledge - Example Questions

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| By Jeff
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Jeff
Community Contributor
Quizzes Created: 1 | Total Attempts: 192
Questions: 5 | Attempts: 192

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General Trading Knowledge - Example Questions - Quiz


Questions and Answers
  • 1. 

    The use of margin to maximize the advantage of an investment is considered:

    • A.

      A. Delta

    • B.

      B. Positoning

    • C.

      C. Leverage

    • D.

      D. Volatility

    Correct Answer
    C. C. Leverage
    Explanation
    C. The use of margin to maximize the advantage of an investment is considered leverage.

    Rate this question:

  • 2. 

    When a support area is held, buyers tend to come into the market:   

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    True. When a support area is held, buyers tend to come into the market.

    Rate this question:

  • 3. 

    You are watching a financial network and you hear a recommendation by an analyst you admire. You should: 

    • A.

      A. Follow the advice only if a second opinion agrees

    • B.

      B. Follow the advice since the analyst appears credible

    • C.

      C. Complete your own due diligence

    • D.

      D. Do the opposite of the recommendation

    Correct Answer
    C. C. Complete your own due diligence
    Explanation
    C. Completing your own due diligence is the obvious choice.

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  • 4. 

    An Exchange Traded Fund (ETF) is similar to Mutual Funds except:  

    • A.

      A. They bundle securities

    • B.

      B. Are subject to volatility

    • C.

      C. They trade throughout the day

    • D.

      D. Diversified portfolios

    Correct Answer
    C. C. They trade throughout the day
    Explanation
    C. An ETF trade throughout the day. Mutual Funds only trade at the end of the day at the net asset value (NAV) price.

    Rate this question:

  • 5. 

    Which one do you like?

    • A.

      Option 1

    • B.

      Option 2

    • C.

      Option 3

    • D.

      Option 4

    Correct Answer
    A. Option 1
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