CPT Cheat Sheet 2026

The 30 highest-yield CPT facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the relationship between cryptocurrency & digital assets and overall Certified Pro Trader professional competency? → It is an essential component that strengthens the overall competency framework
2. What is the relationship between tax implications & record keeping and overall Certified Pro Trader professional competency? → It is an essential component that strengthens the overall competency framework
3. What does 'position sizing' refer to? → Determining trade size relative to risk
4. What is drawdown in trading? → Decline from equity peak to trough
5. What does a 'volume profile' chart display that a standard volume histogram does NOT? → Volume distribution across different price levels rather than across time
6. What is a trend-following strategy? → Entering trades in the direction of the market trend
7. A grain elevator manager sells wheat futures to lock in a price for upcoming harvest. This is an example of: → Hedging
8. What does 'initial margin' represent in futures trading? → The good-faith deposit required to open a futures position
9. What is a futures contract? → An agreement to buy or sell an asset at a predetermined price on a specified future date
10. Which of the following is the primary regulator of U.S. futures markets? → Commodity Futures Trading Commission (CFTC)
11. What does a 'head and shoulders' pattern indicate? → A trend reversal from bullish to bearish
12. What does AML stand for? → Anti-Money Laundering
13. What is a key principle of cryptocurrency & digital assets in Certified Pro Trader practice? → Applying structured methodologies based on evidence and best practices
14. How should CPT professionals measure success in forex & currency markets? → Using defined metrics, benchmarks, and regular evaluation against established goals
15. What challenge is most commonly encountered in options & derivatives trading within Certified Pro Trader practice? → Resistance to change and difficulty maintaining consistency across stakeholders
16. What is the 2% rule in trading? → Risk no more than 2% of capital on a trade
17. What does 'open interest' measure in a futures market? → The total number of outstanding (unsettled) futures contracts
18. How should CPT professionals measure success in algorithmic & automated trading? → Using defined metrics, benchmarks, and regular evaluation against established goals
19. What is a key principle of fundamental analysis & valuation in Certified Pro Trader practice? → Applying structured methodologies based on evidence and best practices
20. When implementing forex & currency markets practices, what should CPT professionals prioritize? → Alignment with professional standards, stakeholder needs, and organizational goals
21. What does the term 'buy the dip' mean? → Buy after a price pullback expecting recovery
22. What challenge is most commonly encountered in trading psychology & discipline within Certified Pro Trader practice? → Resistance to change and difficulty maintaining consistency across stakeholders
23. Why are trading regulations important? → To maintain fair, transparent, and secure markets
24. Which indicator is commonly used to time market entries? → Moving average
25. What is a resistance level? → A level where price tends to stop rising and may reverse
26. A trader uses commodity futures to benefit from price differences between two related commodities (e.g., heating oil vs. crude oil). This strategy is called: → Inter-commodity spread trading
27. How does algorithmic & automated trading contribute to professional excellence in CPT certification? → It enhances competency, improves outcomes, and supports continuous professional growth
28. How should CPT professionals measure success in portfolio diversification strategies? → Using defined metrics, benchmarks, and regular evaluation against established goals
29. How does cryptocurrency & digital assets contribute to professional excellence in CPT certification? → It enhances competency, improves outcomes, and supports continuous professional growth
30. What does 'duration' measure in bond portfolio management? → A bond's price sensitivity to changes in interest rates, expressed in years