Trading Jobs Study Guide 2026
Everything you need to pass the Trading Jobs exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📚 Trading Jobs Topics to Study (33)
✍️ Sample Trading Jobs Questions & Answers
1. What does the REVERSAL pattern's name mean?
In technical analysis, a 'reversal pattern' indicates a change in the direction of a price trend. The 'Double bottom' is a classic bullish reversal pattern, signaling that a downtrend may be ending and an uptrend is about to begin. It forms when the price makes two distinct lows at roughly the same level, with a moderate peak in between.
2. What is 'volatility' a measure of in energy markets?
Volatility quantifies how much and how quickly prices move, a key input for option pricing and risk.
3. What does having a SHORT position mean?
Having a 'short position' or 'going short' means selling an asset that you don't own (typically borrowed) with the expectation that its price will fall. In currency trading, this involves selling the base currency and buying the counter currency, anticipating that the base currency will depreciate. If the price drops, you can buy it back at a lower price, returning the borrowed asset and profiting from the difference.
4. What does it mean when a bond is trading 'at a discount'?
A bond trading at a discount means its current market price is below its face value of $1,000, typically because market interest rates have risen since issuance.
5. A 'bull call spread' involves which combination of options?
A bull call spread involves buying a call at a lower strike and selling a call at a higher strike, limiting both profit potential and premium cost.
6. What is 'basis risk' in energy trading?
Basis risk arises when the price of a hedging instrument and the hedged asset do not move perfectly together.