Trading Terms Exam Practice Set 1

What do you use to look at price and volatility over time in statistical charts?


Options are :

  • Intraday Graphs
  • Bollinger Bands (Correct)
  • Chart Patterns
  • Chart Pattern Trading

Answer : Bollinger Bands

Something occurring within a single day is


Options are :

  • Stepper
  • Intraday (Correct)
  • Enerday
  • Breakout

Answer : Intraday

A day trader is


Options are :

  • Breaking the law
  • Someone who buys and sells financial instruments and assets over the same day (Correct)
  • Someone who uses automated trading strategies for quick trading

Answer : Someone who buys and sells financial instruments and assets over the same day

Hedge funds generally integrate


Options are :

  • Automated Trading Strategies
  • Quant Trading (Correct)
  • Day Trading Strategies

Answer : Quant Trading

Statistical differences in your financial analysis is known as


Options are :

  • Outliers
  • Variance (Correct)
  • Contraction

Answer : Variance

DJIA stands for


Options are :

  • Dow Jones Industrial Average (Correct)
  • Divergent Integrated Analysis
  • Distributed Just of Integrated Assets

Answer : Dow Jones Industrial Average

FINCEN stands for


Options are :

  • Financial Regulatory and Cost Network
  • Financial Crimes Enforcement Network (Correct)
  • FinTech Cost-Analysis Network

Answer : Financial Crimes Enforcement Network

Warren Buffet started


Options are :

  • Microsoft
  • Berkshire Hathaway (Correct)
  • Wallet Disney
  • Pixar
  • Apple Computers

Answer : Berkshire Hathaway

Which company has the most expensive publicly traded stock of all time?


Options are :

  • Apple Computers
  • Tesla
  • Berkshire Hathaway (Correct)
  • Facebook
  • Segway

Answer : Berkshire Hathaway

SpaceX is


Options are :

  • Publicly Traded
  • Privately Traded (Correct)

Answer : Privately Traded

Where is NASDAQ located?


Options are :

  • Washington DC
  • New York (Correct)
  • Columbus
  • Silicon Valley

Answer : New York

Trading breakout hours are important for


Options are :

  • Market resistance time
  • Optimizing opens
  • Time estimates for bidding
  • All of these answers (Correct)

Answer : All of these answers

In Forex trading, you trade


Options are :

  • Cryptocurrencies
  • Global Currencies (Correct)
  • Stocks and Commodities

Answer : Global Currencies

Mutual funds or exchange-traded funds are known as


Options are :

  • Bonds
  • Stocks
  • Hedges
  • Index Funds (Correct)

Answer : Index Funds

In the S & P 500, S & P stands for


Options are :

  • Standards & Poor's (Correct)
  • Stocks and Portfolios
  • Stocks and Products
  • Stakes and Practices

Answer : Standards & Poor's

True or False: Funds trades in bonds or other known debt investments are known as "Bond Funds"


Options are :

  • True (Correct)
  • False

Answer : True

MBS stands for Mortgage Backed Securities


Options are :

  • True (Correct)
  • False

Answer : True

True of False: James Simons is famous as a talk show host


Options are :

  • True
  • False (Correct)

Answer : False

True of False: James Simons made his fortunate with Quant Trading


Options are :

  • True (Correct)
  • False

Answer : True

Limit or qualifying investments using short bets or exceptions is known as


Options are :

  • Automated Trading
  • Hedging (Correct)
  • Shorts
  • Shot Calls

Answer : Hedging

BTC is the symbol for


Options are :

  • British Territories Chambers
  • British Columbia Bank
  • Bitcoin (Correct)

Answer : Bitcoin

Donald Knuth is the guy who once said, "An algorithm must be seen to be believed."


Options are :

  • True (Correct)
  • False

Answer : True

The amount you are willing to pay in comparison to the ask price is known as your bid


Options are :

  • True (Correct)
  • False

Answer : True

Commission is a fee percentage for handling your investment


Options are :

  • True (Correct)
  • False

Answer : True

HODL is an acronym for Hold On for Dear Life


Options are :

  • True (Correct)
  • False

Answer : True

In the US, after-hours trading continues until


Options are :

  • 4pm
  • 6pm
  • 8pm (Correct)
  • Midnight

Answer : 8pm

Blue Chip stocks are stocks from industry leading companies


Options are :

  • True (Correct)
  • False

Answer : True

Conservative means


Options are :

  • Low risk, usually little returns (Correct)
  • Medium risk,nominal returns
  • High risk, low returns
  • High risk, high returns

Answer : Low risk, usually little returns

Bourse usually refers to stock markets usually outside the US and typically applies more towards European stock exchanges or the Paris Stock Exchange


Options are :

  • True (Correct)
  • False

Answer : True

A measurement of the price of the stock over movement of the whole market is known as


Options are :

  • Industry average
  • Correlation
  • Beta (Correct)

Answer : Beta

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