General Trading Knowledge Test

About CFDMaster Trading Knowledge Tests

CFDMaster offers a comprehensive test for traders of all education and skill levels. There are currently three test available, rigorously developed.

All test are quizzes with random questions.

Regardless of where you are in your trading career, this tests are an opportunity to test your knowledge about trading and know if you are really prepare for trading.

Tests are developed by experience traders and give you a technical and financial knowledge edge.

General Knowledge Test

This quiz is designed to test your General knowledge and understanding of financial markets.

After you pass this quiz you will be graded as Novice, Advanced Trader, Experienced Trader or Master Trader.

What are CFDs (Contract for Difference)?

 

 A leverage financial product​

 Margin lending tool​

 Difference financial contract

 Shorting financial tool​

Do all brokers have an expiry date on their future contracts?

 

 Yes, all brokers rollover their future contracts

 Yes, but some brokers rollover the future position while other close them at the expiry date if not notification is given

 No, Future contracts do not expire

 Yes and they close all future contract position.

What is leverage?

 

 Leverage is used when buying stocks

 A technique to multiply gains/losses which involves buying an asset by using borrowed funds

 Leverage depends on the amount deposited in the account

 The number of times that the initial capital can buy or sell the same stock

What is the risk of trading CFDs?​

 

 

 Portfolio’s lending values will increase overtime​

 CFDs are a financial product designed to create losses​

 CFDs are a leverage product and losses can be greater than gains​

 CFD traders often do not receive sufficient market information​

When do Equities CFDs contract expire?

 

 Many years into the future

 Every 3 months

 Equity CFDs unlike future cfds contracts do not expire

 Equity CFDs contracts expired daily

What is guaranteed Stop Loss?

 

  An automated stop loss order that is initiated by the broker if your account balance is negative

 A stop loss order that’s not subject to loss

  A stop loss order that’s not subject to slippage or gapping

 Is the maximum loss that a trade can have before the fund in an account are depleted

What is initial Margin?

 

 The initial amount required for a trade to be entered

 The initial amount to be deposited before executing a forex trade

 The initial margin required to open a short position

 Is the initial amount of leverage allowed by a broker

In CFD trading, which statement best describes a margin call?

 

 A margin call is triggered if your loan balance exceeds the selling value of your portfolio​

 A margin call is triggered when your account balance is negative​

 A margin call happens when a trading account has enough money to support the open trades​

 The brokers increase the amount owed​

What does IMR stand for?

 

 Initial Money Required

 Initial Margin Requirement

 Immediate Margin Require

 Indexed Marginal Revenue

Overnight financing is a fee charge by brokers, when does it applies?​

 

 When holding a contract overnight​

 When financing cost are related to how long and how much your trade is​

 When holding a position only over the weekend​

 When holding a future contract overnight​

What is trading on margin?​

 

 Number of pips brokers allows price to fall​

 A percentile of the total amount of funds borrowed from a broker to purchase stock

 The amount of money owed in a account​

 Percentage of money needed to fund an account in margin call​

What is CGSL?

 

 Capital Gained from Stop Level

 Compulsory General Stop Loss

 The minimum amount required for a platform or computer system to generated an automated stop Loss

 Computer Generated Stop Level is the maximum distance the system will place your stop loss

What is a pip?​

 

 Pip stands for percentage in point​

 Increase in value 1 point at the time​

 Pip stands for personal increase in profits​

 Pip equals 1:200 of 1 percent, or .0005​

Which of the following CFD market has usually the lower spread in percentage term?

 

 Equities

 Forex

 Indexes

 Commodities

What is spread?​

 

 The way brokers charge commission​

 The difference between last open price and closed price​

 A number of instruments in a portfolio​

 The price difference between the bidding price and the asking price​

What is maintenance margin?

 

 The equity or balance of funds level to be maintained before margin call can be triggered if the value of securities falls below the maintenance margin.

 A certain margin to be maintained during a trade

 The amount of open trade that an accounts need to maintain the leveraged margin

 Brokers are required by law to maintain a safety margin

What is limit order?

 

 An order to close a short position

 An instruction to close a trade for a profit

 A guarantee order to close a trade

 None of the Above

 What is a leverage benefit?​

 

 The bigger the leverage the bigger the trade and the pips are worth more in the spread​

 There are not trading benefits​

 The risk associated with leverage is bigger than the benefit​

 Smaller margin or cash amount required to open any position

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Question 1 of 18

Other Available Tests

• General Trading Knowledge Test
• Fundamental Trading Knowledge Test (Financial Statements)
• Fundamental Trading Knowledge Test (Ratios)
• Fundamental Trading Knowledge Test (Economic Indicators)
• Technical Knowledge  Test (Indicators)
• Technical Knowledge  Test (Candlesticks) Not Available
• Technical Knowledge  Test (Patterns) Not Available
• Trading Readiness Test  Not Available