What does the acronym ETF stand for in finance?

In technical analysis, what does the RSI (Relative Strength Index) measure?

What is a 'margin call' in trading?

What is the purpose of a 'limit order' in trading?

What does the term 'drawdown' refer to in trading?

Which economic indicator is commonly used to assess inflation?

What is the significance of a 'golden cross' in technical analysis?

What does the term 'arbitrage' mean in trading?

Which financial market operates 24 hours a day, five days a week?

What does the 'VIX' measure in the financial markets?

What does ROI stand for in trading?

What is a 'bull market' characterized by?

What does 'long' and 'short' refer to in trading?

What is the primary purpose of a stop-loss order?

What does the term 'Pip' stand for in Forex trading?

Which economic indicator measures the total value of goods and services produced in a country?

What does the term 'Leverage' mean in trading?

Which candlestick pattern is often considered a reversal signal in technical analysis?

What is the role of a 'bear market' in trading?

What does 'FOMC' stand for in the context of trading and finance?

Margin Call Analysis:

Your account balance is $100,000, and you have an open position on EUR/USD with a volume of 2 standard lots. If the minimum margin requirement is $1,000 per lot, what is the minimum adverse price movement needed to trigger a margin call? (Assume a margin call level of 100%)

VaR and Risk:

Calculate the Value at Risk (VaR) for a $250,000 portfolio with a mix of stocks, forex, and commodities. Given historical volatility, the VaR at a 95% confidence level is $15,000.

Complex Trading Scenario:

You are considering entering an options trade with Microsoft. If the potential profit for the trade is $8,000 and the potential loss is $5,000, what is the risk-reward ratio?

Regression Analysis of Trend:

After performing regression analysis on historical stock data, you determine the regression coefficient to be 0.75 and the explained variance to be 80%. What is the predicted value for the next data point if the current value is 100?

Position Sizing and Leverage:

You have an account balance of $150,000 and want to open a position with a notional value of $500,000 on a currency pair. If your risk per trade is 1%, what leverage should you use, and how many lots can you trade?

Risk Management and Drawdown:

Assuming you have a trading account with $200,000 and a maximum allowable drawdown of 15%, calculate the maximum amount you can risk on a single trade, and determine the position size for a trade with a stop loss of 50 pips.

Account Growth Target:

You start with a trading account of $50,000 and aim to grow it to $100,000 within a year. If your average monthly return is 5%, calculate the required monthly growth rate.

Compound Interest and Profit Target:

You have a starting capital of $75,000, and your goal is to reach a profit target of $150,000 within two years. Assuming a compounded annual growth rate of 10%, determine whether your target is achievable.

Black-Scholes option pricing model

A trader is using the Black-Scholes option pricing model to evaluate a European call option. The stock price is $150, the strike price is $140, the risk-free interest rate is 3%, the time to expiration is 0.5 years, and the volatility is 20%. Calculate the theoretical price of the call option using the Black-Scholes formula.

Quantitative analyst

A quantitative analyst is developing a trading algorithm that involves statistical arbitrage. The algorithm identifies a pair of correlated stocks with a historical correlation coefficient of 0.85. If Stock A has a current price of $120 and Stock B has a current price of $90, what is the expected price of Stock B based on the regression analysis?