Trading Jobs Cheat Sheet 2026
The 30 highest-yield Trading Jobs facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.
- What is 'yield to maturity' (YTM)? → The total return anticipated if held until maturity
- What does MACD stand for? → Moving Average Convergence Divergence
- In technical analysis, what does a 'head and shoulders' pattern typically signal? → A bearish reversal from an uptrend
- What does OPEC primarily influence in global energy markets? → Crude oil supply through production quotas
- What is 'spoofing' in electronic trading markets? → Placing large orders with no intention of executing them to manipulate other traders
- In backwardation, near-term futures prices are typically: → Higher than longer-dated futures prices
- Why might a power trader buy electricity futures ahead of a heat wave? → To lock in supply before cooling demand drives prices up
- Why is backtesting valuable when developing a day trading strategy? → It tests the strategy's historical performance before risking real capital
- What is 'wash trading' and why is it prohibited? → Simultaneously buying and selling the same security to create artificial trading volume
- What is 'fat tail risk' (also called tail risk) in trading? → The risk of extreme price moves that occur more often than a normal distribution predicts
- Emotional discipline matters in forex mainly because what? → Fear and greed cause poor, impulsive decisions
- Which three currencies are the strongest in the world? → USD, EUR, and YEN
- What is an 'iron condor' options strategy? → Selling an out-of-the-money call spread and put spread simultaneously
- Leverage of 100:1 means a $1,000 margin controls how much position size? → $100,000
- What is scalping in day trading? → Taking many small, quick trades to capture tiny price moves
- What does this price pattern's name mean? → Double top
- What does a 'call option' give the buyer the right to do? → Buy shares at the strike price
- Which candlestick pattern often signals a potential bullish reversal at support? → Hammer
- What is the purpose of identifying the 'opening range' in the first 15-30 minutes? → To set high/low levels that act as breakout or breakdown triggers
- Which factor makes a stock more suitable for day trading? → High average daily volume and volatility
- In technical analysis, what does an RSI reading above 70 typically indicate? → The security is overbought and may be due for a pullback or reversal
- What is 'best execution' in securities trading? → The obligation to seek the most favorable terms reasonably available for client orders
- Why do energy traders monitor weather forecasts so closely? → Weather drives demand for heating, cooling, and power generation
- Which license allows a financial professional to sell variable annuities and mutual funds but NOT individual stocks? → Series 6
- What does 'Vega' measure in options pricing? → Sensitivity to changes in implied volatility
- How long does a FINRA license remain valid after a registered representative leaves a member firm? → 2 years
- Which benchmark is the primary price reference for North American crude oil? → West Texas Intermediate (WTI)
- What is the 'benchmark' most commonly used for pricing corporate bonds in the US? → US Treasury yields
- What is the main purpose of using moving averages in technical analysis? → To smooth out price data and identify the direction of the underlying trend
- What is the main function of a clearinghouse in exchange-traded energy futures? → To act as counterparty to both sides and guarantee settlement
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