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DFOL Futures Contracts Guide

CSI DFOL chapter guide for futures contracts, with section lessons, options workflow cues, and review priorities.

Futures Contracts is a DFOL exam topic weighted at 11%. Use this chapter landing page to frame the derivative, strategy, account, or market-structure issue first, then move into the section lessons for the specific payoff, permission, margin, clearing, exchange, tax, or adjustment cues.

What this topic is really testing

  • basic features of forward agreements and futures contracts
  • pricing of futures contracts
  • hedging with futures contracts
  • speculating with futures contracts

Section lessons

LessonMain review cue
Basic Features of Forward Agreements and Futures ContractsDescribe the basic structure of a forward agreement and a futures contract
Pricing of Futures ContractsExplain the relationship between the futures market and the cash market
Hedging with Futures ContractsDefine hedging and identify the risk exposure that a futures hedge is designed to offset
Speculating with Futures ContractsExplain why leverage and liquidity attract speculators to futures markets

Better first instincts

If the case feels most like…Better first move
payoff or strategy selectionidentify the option position and the intended risk/reward profile
account or margin workflowconfirm approval, documentation, margin, and supervision before strategy use
exchange, clearing, or order handlingassign the correct listed-options infrastructure role
contract adjustment or non-equity optioncheck the terms and settlement mechanics before using ordinary equity-option shortcuts

Common traps

  • treating all derivatives as if they have the same payoff and workflow
  • ignoring account approval and margin after identifying the right strategy
  • confusing hedging, speculation, income, and volatility intent
  • missing when market structure, clearing, tax, or contract adjustment is the actual test

In this section

Revised on Friday, May 29, 2026
1. An Overview of Derivatives
3. Exchange Traded Options