Experience the Quality With Free Series 3 License Exam Questions That Helps Candidates Pass

T-bond futures tick = 1/32 point = $31.25. Full point = $1,000. Candidates must memorize tick sizes for major contracts.

The initial margin (performance bond) deposit is returned when the position is liquidated, adjusted for daily P&L. Maintenance is a threshold, not separate deposit. Variation is daily gain/loss.

Introducing Brokers solicit and accept orders but don’t handle customer funds. FCMs accept funds. CTAs advise, CPOs pool. Knowing registration categories is crucial.

The crack spread represents refining margins: crude oil (input) versus products (heating oil/gasoline). This is a classic processing spread tested on Series 3. Crush spreads apply to soybeans and reverse crush is the opposite. Arbitrage spreads involve price convergence across exchanges.

Change = 0.0100 × $125,000 = $1,250. Correction: actual gain = $1,250 (B). Careful reading of contract size and tick values is essential to avoid exam traps.