Quizz | Swissquote

1. What a ‘Contract for difference’ (CFD)?

The future price of an underlying asset.A way to participate in the market based on the price movements of so-called underlying assets.A stockThe cost of keeping your trade opened overnight.

Justification: CFD means ‘Contract for Difference’ and its price is linked to the underlying asset.

2. Which of the following points can be an advantage and an inconvenient of a CFD at the same time?

Leverage allowedTo not have fix lot sizesPortfolio hedgingEasy access to Global Markets

Justification: Leverage can be an advantage and an inconvenient because it allows to multiply gains but also losses.

3. Please complete the following sentence: ____________ are the cost of holding your position overnight.

DividendsSpreadBroker’s feesRollover fees

Justification: The dividend is a part of the company's profits, paid to the shareholders. The spread is the difference between the buying price and the selling price. The Broker’s fees are securities trading fees charged to traders for the processing and execution of stock exchange transactions.

4. Which of the following statements is wrong?

One of the advantages of CFD is that you can profit in both rising and falling markets.CFDs are quoted in the same currency as the underlying asset.When you hold a CFD, you own the underlying asset.It is important to ensure that you have funds in your trading account to cover different costs.

Justification: When hold have a CFD, you do not own the underlying asset.