Order Flow Training - Final Test

What do financial markets provide a system for?

• Social networking between different countries

• Trading of goods and services

• Trading financial instruments

• Exchange of real estate properties

What term is sometimes used to refer to strong hands in the market context?

• Quick money

• Smart money

• Easy money

• Steady money

What does the term "weak hands" refer to in the market context?

• Investors who hold their positions for long periods

• Investors who are confident and rarely sell their assets

• Investors who quickly sell their assets out of fear on any negative news

• Investors who are known for their strong influence on market trends

What does a zero-sum game refer to in financial markets?

• A situation where the gains and losses among market participants do not affect the net outcome.

• A situation where the gains and losses among market participants result in a net sum of zero.

• A situation where all market participants gain equally.

• A situation where the market always results in a profit for all participants.

How do we make money when we place a short position in the market?

• After selling, you aim to buy back the security at a lower price to cover your short position, thus profiting from the price difference.

• After selling, you aim to buy back the security at a higher price to cover your short position, thus profiting from the price difference.

What is the outcome for the counterparty in futures trading when one trader makes a profit by correctly predicting price movements?

• The counterparty makes a profit as well.

• The counterparty's outcome is not affected.

• The counterparty loses an equal amount.

• The counterparty also gains but not equally.

What role does an algorithm play in financial markets?

• It has no significant impact on financial markets.

• It plays a crucial role in driving price movements.

• It solely relies on manual intervention for market operations.

• It decreases market efficiency and reliability.

What are IPDAs?

• Manual intervention programs for market operations.

• Traditional auction-based systems for price delivery.

• Interbank Price Delivery Algorithms that are AI-based.

• Inefficient computer programs used in financial markets.

What is the primary objective of IPDAs?

• To decrease liquidity in the financial markets.

• To ensure fair value by manipulating prices according to predefined parameters.

• To eliminate the use of algorithms in market operations.

• To increase the need for manual interventions in price delivery.

Approximately what percentage of price delivery are IPDAs responsible for?

• 50%

• 70%

• 90%

• 100%