Series 31 study guide
Series 31 · Work through your exam, one topic at a time.
The Futures Managed Funds Examination, commonly called the Series 31, is a qualification exam for individuals whose work involves managed futures programs and commodity pools - the sales, solicitation, and supervisory side of the futures fund business rather than hands-on order entry. Candidates typically encounter it after entering a firm's registration pipeline, and it is generally pursued alongside, not instead of, a broader securities or futures principal/representative qualification. The Series 31 study guide has 4 sections and about 1,362 words.
01Futures Trading: Contract Mechanics, Margin, and Order Handling
A futures contract is a standardized, exchange-cleared agreement to buy or sell a specified quantity of a commodity or financial instrument at a future date. Candidates must be able to read a contract specification: contract unit, minimum tick and tick value, delivery months, last trading day, deliverable grade, price limits, and position limits.
344 words, about 2 min02Futures Options: Rights, Obligations, and Exercise Outcomes
An option on a futures contract gives the buyer the right, but not the obligation, to establish a long (call) or short (put) futures position at the strike price. Exercise does not deliver the cash commodity; it creates a futures position that carries its own margin requirement.
330 words, about 2 min03Managed Futures: CPOs, CTAs, Disclosure, and Break-even
A commodity pool operator (CPO) operates a pooled vehicle that trades commodity interests; a commodity trading advisor (CTA) provides advice on commodity interest trading for compensation, whether directly or through publications. Both must register with the CFTC and be NFA members unless an exemption applies.
327 words, about 2 min04Regulatory and Compliance: NFA Rules, Advertising, and Records
The CFTC is the federal regulator; the NFA is the self-regulatory organization with which futures professionals must register. Registration categories include FCM, IB, CPO, CTA, and associated person (AP).
361 words, about 2 min