AAFM CWM_LEVEL_2 Exam - Topic 1 Question 112 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 112
Topic #: 1

Section B (2 Mark)

One unit of trading for Guar Seed futures is 10 MT and delivery unit is 10 MT. A trader sells 1 unit of Guar Seed at Rs.2500/Quintal on the futures market. A week later Guar Seed futures trade at Rs.2550/Quintal. How much profit/loss has he made on his position?

A(-)5000

B(+)5000

C(+)50,000

D(-)50,000

Show Suggested Answer

Suggested Answer: A

by Santos at Mar 05, 2026, 03:49 PM

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Veronika

1 day ago

Yup, definitely a loss of 5000.

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Phuong

6 days ago

Seems off, double-check those numbers!

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Talia

12 days ago

Wait, how is that a loss? I thought selling high was good!

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Wynell

17 days ago

Totally agree, that's a loss of 5000.

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Ilona

22 days ago

Sold at Rs.2500, bought back at Rs.2550. That's a loss!

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Benton

27 days ago

I feel like the answer could be B or D, but I need to double-check how to calculate the total loss based on the unit size.

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Berry

1 month ago

I'm a bit unsure about the exact math here, but if he sold at Rs.2500 and it went to Rs.2550, that sounds like a loss to me.

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Paul

1 month ago

I practiced a similar question where the price change was different, but I think the loss calculation involves the difference in price times the quantity.

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Peggie

1 month ago

I think I remember that selling futures means you're betting the price will go down, so if it goes up, you lose.

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