CoolInterview.com - World's Largest Collection of Interview Questions & Answers, FAQs, queries, sample papers, exam papers, dumps, what, why, how, where, when questions
Our Services
Get 9,000 Interview Questions & Answers in an eBook.




Get it now !!
Send your Resume to 6000 Companies
Futures And Options Trading Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM INVESTMENT INTERVIEW QUESTIONS FUTURES AND OPTIONS TRADING INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Futures And Options Trading Interview Questions & Answers - Learning Mode

Derivatives are instruments that derive their value from an underlying security like a share, debt instrument, currency or commodity. Futures and options are the two type of derivatives commonly traded. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Such an agreement works for those who do not have the money to buy the contract now but can bring it in at a certain date. These contracts are mostly used for arbitrage by traders. It means traders buy a stock at a low price in the cash market and sell it at a higher price in the futures market or vice versa. The idea is to play on the price difference between two markets for the same stock. In case of futures contracts, the obligation is on both the buyer and the seller to execute the contract at a certain date. Futures contracts are special types of forward contracts. They are standardized exchange-traded contracts like futures of the Nifty index.

Try Futures And Options Trading Interview Questions & Answers - Exam Mode

1 2 3 4 5 6 7 8 9 10 11 12 13 Next

Sort By : Latest First | Oldest First | By Rating

Futures And Options Trading Interview Questions & Answers - Learning Mode
Try Futures And Options Trading Interview Questions & Answers - Exam Mode
Question: What are Crop Reports in Futures and Options Trading Market?

Answer: Crop Reports in Futures and Options Trading Market are Reports compiled by the U.S. Department of Agriculture on various agricultural commodities that are released throughout the year. Information in the reports includes estimates on planted acreage, yield, and expected production, as well as comparison of production from previous years. Source: CoolInterview.com
Question: What is Suspension in Futures and Options Trading Market?

Answer: Suspension in Futures and Options Trading Market is the end of the evening session for specific futures and options markets traded at the Chicago Board of Trade. Source: CoolInterview.com
Question: What is Horizontal Spread in Futures and Options Trading Market?

Answer: Horizontal Spread in Futures and Options Trading Market is the purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month. Also referred to as a calendar spread. Source: CoolInterview.com
Question: What are Point-and-Figure Charts in Futures and Options Trading Market?

Answer: Point-and-Figure Charts in Futures and Options Trading Market are Charts that show price changes of a minimum amount regardless of the time period involved. Source: CoolInterview.com
Question: Who is Hedger in Futures and Options Trading Market?

Answer: Hedger in Futures and Options Trading Market is an individual or company owning or planning to own a cash commodity-corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc.-and concerned that the cost of the commodity may change before either buying or selling it in the cash market. A hedger achieves protection against changing cash prices by purchasing or selling futures contracts of the same or similar commodity and later offsetting that position by selling or purchasing futures contract Source: CoolInterview.com
Question: What is U.S. Treasury Bond in Futures and Options Trading Market?

Answer: U.S. Treasury Bond in Futures and Options Trading Market is a government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually. Source: CoolInterview.com
Question: What is Federal Housing Administration (FHA) in a Futures and Options Trading Market?

Answer: Federal Housing Administration (FHA) in Futures and Options Trading Market is a division of the U.S. Department of Housing and Urban Development that insures residential mortgage loans and sets construction standards. Source: CoolInterview.com
Question: What is Buy On Close in Futures and Options Trading Market?

Answer: Buy On Close in Futures and Options Trading Market refers to buying at the end of a trading session at a price within the closing range. Source: CoolInterview.com
Question: What is Cash Market in a Futures and Options Trading Market?

Answer: Cash Market in Futures and Options Trading Market is a place where people buy and sell the actual commodities; e.g., grain elevator, bank, etc. See Spot and Forward Contract. Source: CoolInterview.com
Question: Who is Holder in Futures and Options Trading Market?

Answer: Holder in Futures and Options Trading Market is the party who purchased an option. Initial Performance Bond The funds required when a futures position (or a short options on futures position) is opened. Sometimes referred to as Initial Margin. Source: CoolInterview.com
Question: What is Commission (or Round Turn) in Futures and Options Trading Market?

Answer: Commission (or Round Turn) in Futures and Options Trading Market is the one-time fee charged by a broker to a customer when a futures or options on futures position is liquidated either by offset or delivery. Source: CoolInterview.com
Question: What are the various types of membership in the derivatives market?

Answer: The various types of membership in the derivatives market are as follows:
1.Trading Member (TM) - A TM is a member of the derivatives exchange and can trade on his own behalf and on behalf of his clients.

2.Clearing Member (CM) -These members are permitted to settle their own trades as well as the trades of the other non-clearing members known as Trading Members who have agreed to settle the trades through them.

3.Self-clearing Member (SCM) - A SCM are those clearing members who Source: CoolInterview.com
Question: What are the differences between SE01, SE09 and SE10?

Answer: Capped-Style Option in Futures and Options Trading Market is an option with an established profit cap. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option's cap price. Source: CoolInterview.com
Question: What is Over-the-Counter Market in a Futures and Options Trading Market?

Answer: Over-the-Counter Market in Futures and Options Trading Market is a market where products such as stocks, foreign currencies, and other cash items are bought and sold by telephone and other means of communication. Source: CoolInterview.com
Question: Explain Standard tables in SAP Internal Tables?

Answer: Wire House in Futures and Options Trading Market is an individual or organization that solicits or accepts orders to buy or sell futures contracts or options on futures and accepts money or other assets from customers to support such orders. Also referred to as "commission house" or "wire house." Source: CoolInterview.com
Question: What are the important conditions laid by SEBI for a Derivative Member?

Answer: The derivatives member is required to adhere to the code of conduct specified under the SEBI Broker Sub-Broker regulations. The following conditions stipulations have been laid by SEBI on the regulation of sales practices:

1.Sales Personnel: The derivatives exchange recognizes the persons recommended by the Trading Member and only such persons are authorized to act as sales personnel of the TM. These persons who represent the TM are known as Authorized Persons.

2.Know-your-client:T Source: CoolInterview.com
Question: What is Minimum Contract Size?

Answer: The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract (Regulation) Act, 1956 had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs. 2 Lakhs. Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. 2 Lakh at the time of introducing the contract in the market. In February 2004, the Exchanges were Source: CoolInterview.com
Question: What is Option Premium in Futures and Options Trading Market?

Answer: Option Premium in Futures and Options Trading Market is the price of an option-the sum of money that the option buyer pays and the option seller receives for the rights granted by the option. Source: CoolInterview.com
Question: What is Cash Contract in a Futures and Options Trading Market?

Answer: Cash Contract in Futures and Options Trading Market is a sales agreement for either immediate or future delivery of the actual product. Source: CoolInterview.com
Question: What are the differences between SE01, SE09 and SE10?

Answer: Cheapest to Deliver in Futures and Options Trading Market is a method to determine which particular cash debt instrument is most profitable to deliver against a futures contract. Source: CoolInterview.com

1 2 3 4 5 6 7 8 9 10 11 12 13 Next



India News Network
Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
Cache = 0.3125 Seconds