Module test: Leverage, short selling and risk
Check what you have learned in Leverage, short selling and risk. The questions cover these goals:
- Calculate how leverage magnifies returns and losses on capital.
- Explain how short selling works and why its losses are not capped.
- Explain liquidity, slippage and gap risk in derivative markets.
- Compare the risk profiles of option buyers and option sellers, including expiry and settlement risks.
How this test works
- 10 questions, picked at random from a bank of 30. Each attempt mixes easy, medium and harder questions across the module's learning goals.
- One question at a time. You can go back, change answers, and jump to any question before you submit.
- No time limit. Your answers are saved in this browser as you go, so a refresh will not lose them.
- You pass with 80% or more. Your best attempt earns XP: 5 for each right answer and 50 more for a pass. Every answer is explained afterwards, and you can retake with fresh questions.
Prefer to see each answer straight away? Practise this module instead
Test results are a learning aid, kept only in your browser. They are not a certificate or proof of knowledge.