Series 3 – National Commodity Futures
Series 3 – National Commodity Futures is a trademark of its owner, which is not affiliated with and does not endorse Test Treasure Publication or TTP Prep.
Series 3 – National Commodity Futures is a trademark of its owner, which is not affiliated with and does not endorse Test Treasure Publication or TTP Prep.
10 sample questions for the Series 3 – National Commodity Futures, with the correct answer and an explanation for each. No account needed. Try each one before you open the answer.
Sections covered on the exam: The Futures Trading Theory and Basic Functions Terminology, The Futures Margins, Option Premiums, Price Limits, Futures Settlements, Delivery, Exercise, and Assignment, The Types of Orders, Customer Accounts, Price Analysis, The Basic Hedging, Basis Calculations, Hedging Futures, The Option Hedging, Speculating, Spreading, The Regulations.
Question 1 · The Futures Trading Theory and Basic Functions Terminology
Answer: C. Futures contracts are marked-to-market daily, while forwards are settled at maturity
Futures contracts are standardized and traded on exchanges with daily mark-to-market settlement. Forwards are private agreements with settlement at maturity, hence more credit risk.
Question 2 · The Futures Margins, Option Premiums, Price Limits, Futures Settlements, Delivery, Exercise, and Assignment
Refer to the following margin table for a crude oil futures contract:
| Margin Type | Amount |
|---|---|
| Initial Margin | $6,500 |
| Maintenance Margin | $5,000 |
| Account Balance Today | $4,600 |
Answer: D. $1,900
Since the account is below maintenance margin, the trader must restore it to the initial margin. $6,500 − $4,600 = $1,900
Question 3 · The Types of Orders, Customer Accounts, Price Analysis
Answer: D. A bearish reversal signal
A double top is a classic chart pattern signaling a potential reversal from an uptrend to a downtrend.
Question 4 · The Option Hedging, Speculating, Spreading
That completes Section 5 (6 Questions) of Practice Test 1.
Answer: B. $750
Profit = (Exit Price – Entry Price) × Contract Size = ($5.35 – $5.20) × 5,000 = $0.15 × 5,000 = $750
Question 5 · The Regulations
Answer: A. To ensure market transparency, fairness, and financial integrity
Regulatory oversight ensures that markets function in a fair, competitive, and efficient manner, protecting all participants.
Question 6 · The Futures Trading Theory and Basic Functions Terminology
Answer: C. Contracts are for delivery at a future date
Unlike spot markets, futures markets involve standardized contracts with settlement at a predetermined date in the future.
Question 7 · The Futures Margins, Option Premiums, Price Limits, Futures Settlements, Delivery, Exercise, and Assignment
Answer: B. A large daily price move against the trader’s position
Variation margin is the additional margin needed when a position loses value due to adverse price movement during the day.
Question 8 · The Types of Orders, Customer Accounts, Price Analysis
Answer: B. Overbought or oversold conditions
The RSI ranges from 0 to 100; readings above 70 suggest overbought, and below 30 suggest oversold conditions.
Question 9 · The Option Hedging, Speculating, Spreading
Answer: B. $3,000
Price gain per bushel = $13.70 − $13.40 = $0.30 Total bushels = 2 × 5,000 = 10,000 Total profit = 10,000 × $0.30 = $3,000
Question 10 · The Regulations
Answer: A. Protect market participants from fraud and manipulation
A core mission of the CFTC is to maintain market integrity, preventing fraud, abuse, and systemic risk.
TTP Prep has 200 Series 3 practice questions with explanations, timed and mock-exam modes, 98 flashcards, interactive lessons, a printable cheat sheet and a readiness score. Start free, no card needed.
More free questions: browse every exam.