Test your basic knowledge |

Day Trading

Instructions:
  • Answer 48 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Complex financial contracts used to hedge against risks. Credit default swaps - or contracts that allow investors to make bets on the likelihood a company will be unable to pay its debts - are a form of derivatives.






2. Someone who commits capital in order to gain financial returns






3. Smallest trading amount






4. .01






5. 1/8 of a dollar






6. Everything including inside information is represented in the price






7. Prices include all public info






8. The more you risk the more you can gain - thus the greater amount of possible loss.






9. A statistical measure of the dispersion of returns for a given security or market index






10. Basic interchangeable goods sold in bulk and used to make other goods - ie gold - oil - or lumber






11. Foriegn Exchange - more active in the afternoon






12. Prices reflect historical information






13. Planning to Fail






14. Smallest trading amount






15. New York Stock Exchange






16. A trader who tries to profit from short-term price movements during trading hours in any day - but offsets the initial position before market closing so that no position remains outstanding overnight






17. Chicago Mercantile Exchange






18. The nearly simultaneous purchase and sale of an asset in order to profit from price discrepancies.






19. A certificate documenting the shareholder's ownership in the corporation






20. Everything including inside information is represented in the price






21. Complex financial contracts used to hedge against risks. Credit default swaps - or contracts that allow investors to make bets on the likelihood a company will be unable to pay its debts - are a form of derivatives.






22. Prices reflect historical information






23. The nearly simultaneous purchase and sale of an asset in order to profit from price discrepancies.






24. The more you risk the more you can gain - thus the greater amount of possible loss.






25. The Trend is your ________ - those who fight the market lose.






26. Wealth in the form of money or property owned by a person or business and human resources of economic value






27. The amount of time a Day trader holds his securities.






28. A statistical measure of the dispersion of returns for a given security or market index






29. Prices include all public info






30. How long do swing traders hold positions?






31. The amount of time a Day trader holds his securities.






32. Someone who commits capital in order to gain financial returns






33. Planning to Fail






34. Wealth in the form of money or property owned by a person or business and human resources of economic value






35. Is the ability to buy or sell in large quantities without changing the price






36. .0001






37. Chicago Mercantile Exchange






38. 1/8 of a dollar






39. Foriegn Exchange - more active in the afternoon






40. A trader who tries to profit from short-term price movements during trading hours in any day - but offsets the initial position before market closing so that no position remains outstanding overnight






41. Basic interchangeable goods sold in bulk and used to make other goods - ie gold - oil - or lumber






42. Is the ability to buy or sell in large quantities without changing the price






43. How long do swing traders hold positions?






44. .0001






45. The Trend is your ________ - those who fight the market lose.






46. New York Stock Exchange






47. .01






48. A certificate documenting the shareholder's ownership in the corporation