Price Action

Question 1

What is Wikipedia’s definition of a futures contract?

Answer 1

1. A futures contract is a standardized legal agreement to buy or sell something (usually a commodity or financial instrument) at a predetermined price at a specified time in the future, between parties not known to each other.

https://en.wikipedia.org/wiki/Futures_contract

Question 2

With regard to futures contracts, the predetermined price the parties agree to buy and sell the asset for is known as the ___.

Answer 2

1. Forward price;

https://en.wikipedia.org/wiki/Futures_contract

Question 3

With regard to futures contracts, the specified time in the future when delivery and payment is to occur is known as the ___.

Answer 3

1. Delivery date;

https://en.wikipedia.org/wiki/Futures_contract

Question 4

Because it is a function of an underlying asset, a futures contract is a ___ product.

Answer 4

1. Derivative;

https://en.wikipedia.org/wiki/Futures_contract

Question 5

The buyer of a futures contract is said to be the ___ position holder, and the selling party is said to be the ___ position holder. As both parties risk their counter-party walking away if the price goes against them, the contract involves both parties lodging a ___ of the value of the contract with a mutually trusted third party.

Answer 5

1. Long;
2. Short;
3. Margin;
   * https://en.wikipedia.org/wiki/Futures_contract*

Question 6

Most E-mini futures (with the exception of agricultural products) expire _(time period)_ .

Name the months of expiration.

Answer 6

1. Quarterly;
2. March;
3. June;
4. September;
5. December;
   * https://en.wikipedia.org/wiki/E-mini*

Question 7

___ are futures contracts that represent a fraction of the value of standard futures.

Answer 7

1. E-minis;

https://en.wikipedia.org/wiki/E-mini

Question 8

E-mini futures conracts are traded primarily on the ___’s Globex electronic trading platform.

Answer 8

1. Chicago Mercantile Exchange;

https://en.wikipedia.org/wiki/E-mini

Question 9

What are the trading hours, trading halts and maintenance periods of the E-mini S&P 500?

Answer 9

1. Sunday to Friday 5:00pm – 4:00pm (Chicago Time / CT) with a 15-minute trading halt from 3:15pm to 3:30pm CT. From 4:00pm to 5:00pm there’s a daily maintenance period.

https://en.wikipedia.org/wiki/E-mini_S%26P

Question 10

Stock index futures are used for_(name two of three listed)_. Index futures are also used as leading indicators to determine market ___.

Answer 10

1. Hedging;
2. Trading;
3. Investing;
4. Sentiment;
   * https://en.wikipedia.org/wiki/Stock_market_index_future*

Question 11

What do CT, CST, UTC, DST and CDT stand for with regard to time zones?

Answer 11

1. CT: Central Time Zone;
2. CST: Central Standard Time;
3. UTC: Coordinated Universal Time;
4. DST: Daylight Saving Time;
5. CDT: Central Daylight Time;
   * https://en.wikipedia.org/wiki/Central_Time_Zone*

Question 12

How is CST related to UTC?

Answer 12

1. CST is six hours behind UTC;

https://en.wikipedia.org/wiki/Central_Time_Zone

Question 13

How is PST related to CST?

Answer 13

1. PST is two hours behind CST;

https://24timezones.com/difference/cst/pst#gref