Skip to main content

Free money test · ages 13 and up

Futures Trading Quiz for Teens

10 quick questions with instant answers and explanations. No sign-up needed.

Nova, the Wealthonauts investing explorer

This futures trading quiz for teens checks how well you understand futures contracts and the risks that come with them. You will work through questions on price risk, hedging, speculation, margin calls and leverage, including a few quick calculations. Score 8 out of 10 or better to pass.

Anyone can take this free test. Ages 13 and up is a starting point, so adults new to futures are welcome too. Every question has a short explanation, and all prices are pretend. Real futures accounts are for adults only. The guide Trading Tomorrow walks through every idea with worked examples and risk checklists.

What this test covers

  • Price risk for producers and users
  • Forward contracts vs. futures contracts
  • Counterparty risk and offsetting a trade
  • Long and short positions
  • Hedgers vs. speculators
  • Margin, margin calls and leverage

How it works: answer all 10 questions, then press “Check my answers.” Get 8 or more right to pass. You’ll see why each answer is right, plus what to read or take next. No sign-up needed, and your answers are not saved.

Take the test

Ages 13 and up — and anyone who wants to learn this.

  1. Question 1 of 10Which business is hurt most when the price of wheat rises?
  2. Question 2 of 10How is a futures contract different from a forward contract?
  3. Question 3 of 10What is counterparty risk?
  4. Question 4 of 10On an exchange, how do you usually get out of a futures position before it ends?
  5. Question 5 of 10A farmer is short one 5,000-bushel contract sold at 6.00. The price falls to 5.50. What is the futures result?
  6. Question 6 of 10What does a hedger usually give up in exchange for more certainty?
  7. Question 7 of 10Which of these is a speculator?
  8. Question 8 of 10Your account has 1,300 coins and the maintenance margin is 1,125. A price move costs you 250 coins today. What happens?
  9. Question 9 of 10A futures contract is worth 24,000 coins and needs 2,000 coins of margin. What is the leverage?
  10. Question 10 of 10What does leverage actually do?

Want to really understand it?

This test is based on Trading Tomorrow — Understanding Futures, Book 07 of The Wealthonauts Adventures. Ages are a starting point, not a limit: plenty of teens and grown-ups are learning these ideas for the first time. Read the book online, take the matching Wealthonauts course, then come back and test yourself again.

More free tests: see all 12 money tests.