01 What is the spread?

The commissionThe margin requirementThe gap between the best bid and the best askThe daily price range

02 Under price-time priority, which resting order at a given price fills first?

The largestA random oneThe smallestThe earliest to arrive

03 How does spot forex differ from CME futures?

It has no single central order bookIt only trades on MondaysIt has no spreadsIt cannot be traded electronically

04 What does depth describe?

How far price moved todayHow much size rests near the best pricesThe number of brokersHow long a session lasts

05 What often happens to liquidity just before a major economic release?

Spreads become zeroIt thins as liquidity providers pull ordersExchanges closeIt increases sharply

06 What is the main trade-off of a limit order?

It has no trade-offIt always pays higher feesFill is guaranteed but price is notPrice is controlled but the fill is not guaranteed

07 A stop order, once triggered, becomes...

CancelledA limit orderA market orderAn iceberg order

08 What is permanent market impact?

A trading banThe part of a price move that remains because the trade revealed informationImpact that fades once the order is doneAn exchange fee

09 What does implementation shortfall measure?

Account drawdownThe number of missed tradesServer downtimeThe gap between the decision price and the final average execution price, including fees

10 What does a VWAP execution algorithm aim to do?

Avoid all volumeTrade more when the market typically trades more, to match the volume-weighted priceTrade only at the closeTrade everything at the open

Quiz: Market Microstructure and Execution