Pre Class Research part 1

Q1) Futures (contract basics)

A) What is a futures contract? (mention standardization & expiration)
B) Find an official product spec page for any futures contract and list: exchange, product code, tick size, multiplier, settlement type (cash or physical).
C) In plain English, what do “multiplier” and “tick size” mean?
D) Futures vs forwards: list two differences.
E) What are initial margin and maintenance margin (one short sentence each)?

Q2) Forex (FX market)

A) What is spot Forex? Explain base vs quote currency with one pair (e.g., EUR/USD).
B) What are a pip and a pipette?
C) What is the typical pip size for EUR/USD and USD/JPY?
D) Spot FX vs FX futures: list two structural differences (e.g., venue/clearing, data).
E) What is rollover/swap in spot FX (one short sentence)?

Q3) ES Futures (/ES) — what it represents

A) What does /ES track, and who provides that index?
B) From an official exchange page, list /ES multiplier, tick size, tick value (as stated), trading hours (ET), settlement, contract months. Add the page URL.
C) How many ticks = 1 point in /ES, and what is the tick $ value (as stated on the spec page)?
D) What is /MES and how is it different from /ES in simple terms?
E) In one sentence, what are price limit rules (limit up/down) at a high level?

Q4) Candlesticks (OHLC)

A) Define open, high, low, close, body, wicks/shadows.
B) In plain words, what can a long upper wick suggest? What about a long lower wick?
C) If a candle closes below it opened, what do many platforms color it? What does “range” refer to?
D) One sentence: candlestick vs line chart difference.

Q5) Time Frames

A) What is a chart time frame (e.g., 5-minute, daily)?
B) One sentence each: what a 5-minute, 1-hour, and daily view can help a trader see.
C) What is multi-time-frame analysis (HTF vs LTF) in one or two lines?

Q6) Why Candles vs Line

A) List two things candles show that line charts don’t.
B) Give two reasons traders prefer candles for decisions, and one case where a line chart is fine.

Q7) What is a Chart?

A) Define a price chart in one line.
B) Name three chart types (e.g., candlestick, bar, Heikin-Ashi/Renko) and give one key difference for each.

Q8) Tick (Futures)

A) Define a tick in futures.
B) From the /ES spec page, what are the tick size and tick value? (as listed)
C) Pick one non-equity future (e.g., crude oil, gold, a Treasury future). From its spec page, list tick size and tick value and name which market it belongs to.

Q9) Pip (Forex)

A) Define a pip and give the typical sizes for EUR/USD and USD/JPY.
B) What are standard, mini, and micro lot sizes in units of currency?

Q10) Indices

A) What is a stock market index?
B) Is the S&P 500 cap-weighted or price-weighted? Who maintains it?
C) Is the Dow Jones Industrial Average cap-weighted or price-weighted? Who maintains it?
D) Name two non-U.S. indices and the organizations that maintain them.

Q11) Long Entry

A) What is a long entry (one line)?
B) What does “stop-loss” mean in plain English?
C) What is risk-to-reward (R:R) in one simple sentence (give a short example like 1:2)?

Q12) Short Entry

A) What is a short entry (for futures; no borrow needed)?
B) In futures, can you open a short as easily as a long? One line answer.
C) Name one risk common with shorting stocks (e.g., short squeeze) that behaves differently in futures.

Q13) Fundamental Analysis

A) Define fundamental analysis (one line).
B) Who publishes CPI, who publishes NFP, and who sets U.S. interest rates?
C) In one sentence, how can interest rates/inflation influence currencies?

Q14) Technical Analysis

A) Define technical analysis (one line).
B) In one short line each: support/resistance, trend, momentum (what they mean in charts).
C) Name two simple ways traders identify support or resistance (no charts needed).

Q15) Why Day Traders Use TA Over Fundamentals (FX & Futures)

A) List three intraday reasons (e.g., timing, microstructure, scheduled data).
B) In 2–3 plain sentences, describe how you’d react after a big news release using TA (e.g., wait for direction to show, use prior levels) instead of trying to predict the news.

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