100+ Free China Futures Basics Practice Questions

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Key Facts: China Futures Basics Exam

60 / 100

Passing score threshold (60%)

China Futures Association (CFA)

100 mins

Official exam duration

CFA Examination Notice

130

Official computer-based test objective questions

CFA Examination Blueprint

RMB 65

Registration fee per exam paper

CFA National Registration Standard

2 years

Individual-subject result validity under current examination rules

CFA Qualification Management Rules

5 Exchanges

Mainland futures exchanges (SHFE, DCE, CZCE, CFFEX, GFEX)

China Securities Regulatory Commission (CSRC)

Futures Fundamentals (期货基础知识) is a current China Futures Association examination subject. The official test comprises 130 computer-based objective questions in 100 minutes with a 60/100 passing bar. Core topics include exchange and contract mechanics, daily settlement, hedging and spreads, financial futures, options, forwards and swaps, pricing analysis, supervision, and risk control. This bank offers 100 English-language MCQ study questions; it is not an official translation or practitioner registration.

Sample China Futures Basics Practice Questions

Try these sample questions to test your China Futures Basics exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following exchanges is the only specialized financial derivatives exchange in mainland China, established specifically to trade stock index and Treasury bond futures?

A.China Financial Futures Exchange (中国金融期货交易所 / CFFEX)

B.Shanghai Futures Exchange (上海期货交易所 / SHFE)

C.Dalian Commodity Exchange (大连商品交易所 / DCE)

D.Zhengzhou Commodity Exchange (郑州商品交易所 / CZCE)

Explanation: The China Financial Futures Exchange (CFFEX), established in Shanghai in September 2006, is mainland China's only dedicated financial futures and options exchange. It operates as a joint-stock corporation listing stock index futures (IF, IH, IC, IM) and government Treasury bond futures (TS, TF, T, TL).

2Which Chinese futures exchange is the primary marketplace for non-ferrous metals such as Copper (CU), Aluminum (AL), and precious metals like Gold (AU) and Silver (AG)?

A.Shanghai Futures Exchange (上海期货交易所 / SHFE)

B.Dalian Commodity Exchange (大连商品交易所 / DCE)

C.Zhengzhou Commodity Exchange (郑州商品交易所 / CZCE)

D.Guangzhou Futures Exchange (广州期货交易所 / GFEX)

Explanation: The Shanghai Futures Exchange (SHFE) is China's premier non-ferrous and precious metals marketplace, listing benchmark contracts for copper, aluminum, zinc, lead, nickel, tin, gold, and silver. Its international subsidiary, the Shanghai International Energy Exchange (INE), trades crude oil, TSR 20 rubber, and containerized freight index futures.

3The Guangzhou Futures Exchange (广州期货交易所 / GFEX), established in 2021, is uniquely positioned in China's derivatives landscape primarily to develop contracts for which sector?

A.Green and low-carbon development, new energy industrial materials, and climate-related commodities (绿色低碳与新能源品种)

B.Agricultural staple grains and oilseed processing derivatives

C.Equity index derivatives and short-term interest rate products

D.Precious metals refining and physical bullion vault receipts

Explanation: GFEX was established with a dedicated strategic mandate to serve green and low-carbon transformation, carbon emissions trading, and new energy materials. It has successfully listed innovative contracts including Industrial Silicon (工业硅) and Lithium Carbonate (碳酸锂) futures and options.

4In terms of legal organizational structure, how do the three traditional Chinese commodity futures exchanges (SHFE, DCE, CZCE) differ from CFFEX and GFEX?

A.SHFE, DCE, and CZCE are non-profit membership-based organizations (会员制), whereas CFFEX and GFEX are joint-stock corporations (公司制)

B.SHFE, DCE, and CZCE are privately owned partnerships, whereas CFFEX and GFEX are state-owned public utilities

C.SHFE, DCE, and CZCE are incorporated for-profit corporations, whereas CFFEX is a non-profit statutory trust

D.All five Chinese futures exchanges are strictly organized as private commercial joint ventures governed by local provincial chambers

Explanation: Under Chinese futures regulatory framework, SHFE, DCE, and CZCE were established as non-profit membership institutions (会员制), owned by their member brokerage and trading firms. In contrast, CFFEX and GFEX were established as joint-stock corporations (公司制), with initial equity capital subscribed by existing exchanges and financial institutions.

5Under the daily price limit mechanism (涨跌停板制度) in Chinese futures markets, what benchmark price is used as the base to calculate the current trading day's upper and lower price limits?

A.The previous trading day's settlement price (上一交易日结算价)

B.The previous trading day's closing price (上一交易日收盘价)

C.The opening auction price of the current trading day (当日开盘集合竞价价)

D.The simple moving average of the last 5 trading days' execution prices

Explanation: In Chinese futures exchanges, daily price limits (涨跌停板) are calculated strictly as a specified percentage (e.g., ±4%, ±6%, ±8%) applied to the previous trading day's volume-weighted settlement price (上一交易日结算价), not the closing price (收盘价).

6For a DCE Soybean Meal futures contract (contract size = 10 metric tons/lot, minimum price tick = 1 RMB/metric ton), what is the minimum value fluctuation (tick value / 最小变动价值) per single contract lot?

A.10 RMB

B.1 RMB

C.5 RMB

D.100 RMB

Explanation: The tick value equals the minimum price fluctuation multiplied by the contract multiplier. For DCE Soybean Meal (M), the tick is 1 RMB/ton and the contract size is 10 metric tons/lot, resulting in a minimum value change of 1 RMB/ton × 10 tons = 10 RMB per contract lot.

7In Chinese futures clearing accounts, what is the fundamental functional distinction between Trading Margin (交易保证金) and Clearing Reserve Funds (结算准备金)?

A.Trading Margin is the capital encumbered/locked to support active open positions, whereas Clearing Reserve Funds represent free, unencumbered cash available for new positions or withdrawals

B.Trading Margin is deposited with commercial banks as escrow, whereas Clearing Reserve Funds are held exclusively as physical warehouse receipts

C.Trading Margin earns risk-free interest from the CSRC, whereas Clearing Reserve Funds are non-interest bearing statutory guarantee fees

D.Trading Margin is paid only upon physical delivery, whereas Clearing Reserve Funds are deducted intraday per trade execution

Explanation: Trading Margin (交易保证金) is the specific portion of equity locked by the exchange/brokerage to collateralize open contract positions. Clearing Reserve Funds (结算准备金 / 可用资金) represent the unencumbered cash balance in the clearing account used for daily mark-to-market settlement, absorbing losses, and opening new contracts.

8What is the core operational principle of the Daily Mark-to-Market Settlement System (当日无负债结算制度 / 逐日盯市) practiced by Chinese futures exchanges?

A.At the close of each trading day, the exchange settles open positions, profits/losses, fees, and required margins using the daily settlement price, and any deficit must be addressed by the applicable margin-call deadline

B.Settlement only occurs upon contract expiration or final physical delivery notice

C.Brokerages settle account balances on a monthly basis, allowing uncollateralized negative balances for up to 30 calendar days

D.Profits and losses are marked to market continuously every second, forcing automated immediate bank card debits

Explanation: Daily Mark-to-Market Settlement (当日无负债结算制度) uses the official daily settlement price to calculate profit/loss, required margin, and fees for members and clients. If margin becomes insufficient, the client must restore it or reduce positions by the deadline in the agreement and applicable exchange rules, or authorized liquidation may follow.

9A trader opens a new long position of 10 lots of DCE Corn futures (10 metric tons/lot) at an execution price of 2,400 RMB/metric ton. On the same day, the contract closes at an official daily settlement price of 2,450 RMB/metric ton. Ignoring transaction fees, what is the position profit/loss credited to the trader's account at daily settlement?

A.+5,000 RMB

B.+500 RMB

C.-5,000 RMB

D.+50,000 RMB

Explanation: Daily Position P&L for a new long position = (Daily Settlement Price - Execution Price) × Contract Size × Number of Lots. Here: (2,450 RMB/ton - 2,400 RMB/ton) × 10 tons/lot × 10 lots = +50 RMB/ton × 100 tons = +5,000 RMB.

10A trader holds an existing short position of 5 lots of SHFE Aluminum futures (5 metric tons/lot) carried over from the previous day at a previous settlement price of 19,200 RMB/metric ton. Today, the contract settles at 19,050 RMB/metric ton. What is the holding profit/loss for today's mark-to-market clearing?

A.+3,750 RMB

B.-3,750 RMB

C.+750 RMB

D.+15,000 RMB

Explanation: Holding P&L for an existing short position = (Previous Day Settlement Price - Current Day Settlement Price) × Contract Multiplier × Number of Lots. Here: (19,200 RMB/ton - 19,050 RMB/ton) × 5 tons/lot × 5 lots = 150 RMB/ton × 25 tons = +3,750 RMB profit.

About the China Futures Basics Exam

Futures Fundamentals (期货基础知识) is a current China Futures Association examination subject covering exchange organization, contracts and trading, hedging and spread strategies, financial futures, options, forwards, swaps, price analysis, supervision, and risk control. The current designated textbook is Futures and Derivatives Fundamentals (期货及衍生品基础). This bank provides an English-language MCQ study adaptation with Chinese terminology; it is not an official translation, exact format simulation, or practitioner licence.

Questions

130 scored questions

Time Limit

100 minutes

Passing Score

60 / 100 (60%)

Exam Fee

RMB 65 per subject paper under current CFA registration standards (China Futures Association (中国期货业协会 / CFA))

China Futures Basics Exam Content Outline

25%

Futures Market Mechanisms & Operations

Institutional architecture of Chinese futures exchanges (SHFE, DCE, CZCE, CFFEX, GFEX), margin deposit structures, daily mark-to-market settlement (当日无负债结算), forced liquidation triggers, standard warehouse receipts (标准仓单), and physical/cash delivery rules.

25%

Hedging, Speculation & Arbitrage Strategies

Principles of long/short hedging, basis definitions and dynamics (Basis = Spot - Futures), basis strengthening and weakening, hedge ratios, calendar spreads (contango vs. backwardation), cross-commodity and cross-market arbitrage, and cash-and-carry no-arbitrage valuation.

20%

Financial Futures (Stock Index & Treasury Bond Futures)

CFFEX stock index futures contracts (IF, IH, IC, IM), multiplier formulas, beta hedging calculations, CFFEX Treasury bond futures (TS, TF, T, TL), conversion factor (CF), cheapest-to-deliver (CTD) bond selection, implied repo rate (IRR), and modified duration portfolio hedging.

20%

Options Fundamentals, Greeks & Trading Strategies

Call/put payoffs, intrinsic vs. time value, moneyness, option Greeks (Delta, Gamma, Theta, Vega, Rho), vertical spreads, straddles, strangles, collars, covered calls, protective puts, and put-call parity theorem.

10%

Swaps & Structured Derivatives

Interest rate swaps (IRS fixed vs. Shibor/LPR floating), commodity swaps, OTC options, autocallable snowball structures (雪球结构), barrier knock-in/knock-out mechanisms, structured notes, and credit default swaps (CDS).

How to Pass the China Futures Basics Exam

What You Need to Know

Passing score: 60 / 100 (60%)
Exam length: 130 questions
Time limit: 100 minutes
Exam fee: RMB 65 per subject paper under current CFA registration standards

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

China Futures Basics Study Tips from Top Performers

1Master daily mark-to-market settlement accounting: distinguish between transaction price (成交价), settlement price (结算价), opening balance, closing balance, and margin call amount.

2Memorize the basis formula (Basis = Spot Price - Futures Price): a strengthening basis (基差走强) benefits short hedgers; a weakening basis (基差走弱) benefits long hedgers.

3Know CFFEX contract specifications: IF and IH have a multiplier of 300 RMB/point; IC and IM have a multiplier of 200 RMB/point; Treasury bond contracts have face values of 2 million (TS) and 1 million (TF, T, TL).

4Determine the Cheapest-to-Deliver (CTD) bond from the actual deliverable basket, conversion factors, accrued interest, financing assumptions, and implied repo rate rather than relying on a yield-only shortcut.

5Internalize option Greek sensitivities: Delta (price slope), Gamma (curvature), Theta (time decay), Vega (volatility sensitivity), and Rho (interest rate sensitivity).

6Review put-call parity: C + K*e^(-rT) = P + S_0 (or C + K/(1+r*T) = P + S_0 in discrete time).

Frequently Asked Questions

What is the passing score and format for the China Futures Basics exam?

The official exam consists of 130 objective computer-based questions administered over 100 minutes. The passing score is 60 out of 100 points (60%).

Which two papers are used for the standard futures qualification-examination result certificate?

Candidates seeking the combined examination-result certificate take Futures Fundamentals (期货基础知识) and Futures Laws and Regulations (期货法律法规). The similarly named longer titles are the current designated textbooks. The certificate and employer-led practitioner registration are separate.

How does daily mark-to-market settlement (当日无负债结算) handle open futures positions in China?

At the close of each trading day, the exchange determines the official settlement price (结算价) under the contract rules. Open positions are marked to market against that price to calculate P&L and required margin. A deficit can trigger a margin call or other risk-control action under the applicable exchange rules and client agreement; the cure deadline is not universal.

How do you calculate the number of stock index futures contracts needed to hedge an equity portfolio?

The formula for beta hedging with stock index futures is: Number of Contracts N = (Portfolio Value × Target Beta or Portfolio Beta) / (Futures Price × Contract Multiplier). For a complete hedge where target beta is 0, N = (Portfolio Value × Portfolio Beta) / (Futures Price × Contract Multiplier).

What is an autocallable snowball option (雪球期权) structure in Chinese OTC derivatives?

A snowball option is an OTC structured derivative (exotic barrier option) where the investor receives an attractive coupon provided the underlying asset does not breach a downside Knock-In (KI) barrier. If the underlying breaches an upside Knock-Out (KO) barrier on an observation date, the contract terminates early and pays the coupon. If a Knock-In occurs without a subsequent Knock-Out, the investor suffers equity-like downside risk at expiration.