Session 11 — Futures for Rookies • True/False Quiz

1) Futures margin is a loan from the broker that subsidizes your trade.

2) If your equity falls below maintenance margin, you generally have until contract expiry to top up.

3) A universal rule says your account must be exactly 5% of notional to trade any futures contract.

4) “Day-trade margins” let you hold positions overnight as long as they were opened during regular hours.

5) A $1 move in MGC (10 oz) changes P/L by $100 per contract.

6) A stop order guarantees your exit price even across overnight gaps.

7) Because of mark‑to‑market, you can be margin‑called even if you haven’t closed your trade.

8) Leverage (×) is simply Notional / Account equity.

9) Long one futures contract and price drops from your entry — you’ll typically see a cash outflow from your margin account that day.

10) MGC contract size is 10 troy oz and its minimum tick is $0.10 (tick value ≈ $1).

11) Initial margin is posted per order, not per contract.

12) Using the class sizing rule: contracts = ⌊(account × risk%) / (stop × size)⌋.

13) Maintenance margin is the maximum loss you can take before liquidation; once reached, the broker closes you automatically.

14) Micros let you dial your P/L per $1 down by about 10× in gold versus the full contract.

15) Notional exposure changes automatically if your account equity changes; halve your equity and your notional halves.