Operations & Process Management Flashcards
7 cards from real Series 3 – The National Commodities Futures Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Operations & Process Management flashcards as text
How are gains and losses on open futures positions settled each day?
Answer: Marked to market by the clearinghouse using the daily settlement price
Futures positions are marked to market daily and gains and losses are credited or debited through variation margin.
Once a trade is accepted for clearing, the clearinghouse becomes:
Answer: The buyer to every seller and the seller to every buyer
Through novation the clearinghouse interposes itself, eliminating direct counterparty credit risk between traders.
Initial margin on a futures contract is best described as:
Answer: A performance bond or good-faith deposit
Futures margin is not a down payment on a loan; it is a good-faith deposit to ensure contract performance.
A customer's account falls below the maintenance margin level. What must the customer typically deposit to meet the margin call?
Answer: Enough to restore the account to the initial margin level
Futures margin calls generally require funding back up to the initial margin requirement.
Customer funds held by an FCM for futures trading must be:
Answer: Segregated from the FCM's own funds
Segregation requirements protect customer funds from the FCM's own creditors and operations.
Open interest refers to:
Answer: The total number of futures contracts outstanding that have not been offset or delivered
Open interest counts contracts still open, unlike volume which counts contracts traded in a period.
A clearing member's customer position moves against it overnight. The clearinghouse collects variation margin from the clearing member:
Answer: Typically at least once a day, and intraday if needed
Clearinghouses collect variation margin daily and may make intraday calls during volatile markets.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- finra.org — Score release, test dates, test delivery, fees, exam format, passing score · verified Oct 2026
- nfa.futures.org — Eligibility, score validity · verified Oct 2026