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Activity papers · Last updated October 2026

HKSI LE Paper 9: Derivatives: free practice test

The paper for Type 2 (dealing in futures contracts) and Type 5 (advising on futures contracts) representatives. It covers futures and options, margining and clearing on HKEX, hedging, speculation and arbitrage, and the rules on dealing in derivatives.

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About the Paper 9 exam

The paper for Type 2 (dealing in futures contracts) and Type 5 (advising on futures contracts) representatives. It covers futures and options, margining and clearing on HKEX, hedging, speculation and arbitrage, and the rules on dealing in derivatives.

What's on the exam

Paper 9
Futures Markets and Contracts
5 key facts
Options
5 key facts
Margining and Clearing
5 key facts
Hedging, Speculation and Arbitrage
5 key facts
Trading Practice and Regulation
5 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the Paper 9 exam

  • 40 questions in 60 minutes is 90 seconds each; profit-and-loss questions need the contract multiplier, so learn the main ones.
  • Hang Seng Index futures are HK$50 per index point; Mini-HSI futures are HK$10 per point.
  • Draw the payoff of each option position (long/short call, long/short put) until it's automatic.
  • You need 70%: 28 out of 40.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the HKSI Key Numbers Sheet.

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What's in the premium Paper 9 prep

Premium Paper 9 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.

3,000practice questions, every answer explained
6full-length mock exams, 50 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 5 topics

Your step-by-step study path

  1. 1
    Futures Markets and Contracts12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Notes free with an account
  2. 2
    Options12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
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  3. 3
    Margining and Clearing12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
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  4. 4
    Hedging, Speculation and Arbitrage12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  5. 5
    Trading Practice and Regulation12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  6. Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.
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Free with an account

Read the complete Paper 9 study notes for “Futures Markets and Contracts”

Our first full set of comprehensive notes, about 10 minutes of reading: What a futures contract is · Calculating profit and loss · Open interest and volume, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. The contract multiplier for Hang Seng Index futures is:
Answer: HK$50 per index point. Each HSI futures contract is worth HK$50 × the index. Mini-HSI futures use HK$10 per point.
2. A trader buys 2 HSI futures at 18,000 and sells them at 18,150. Ignoring costs, the profit is:
Answer: HK$15,000. Profit = 150 points × HK$50 × 2 contracts = HK$15,000.
3. Open interest in a futures contract means:
Answer: The number of contracts outstanding that haven't been closed out or settled. Open interest counts outstanding positions. Volume counts contracts traded in a period.
4. The maximum loss for the buyer of a put option is:
Answer: The premium paid. Option buyers can lose only the premium. Writers face larger risks: unlimited for a short call.
5. A call option with a strike price below the current price of the underlying is:
Answer: In the money. A call is in the money when the underlying price is above the strike, because exercising would give positive value.
6. Which factor generally increases the value of both calls and puts?
Answer: Higher volatility of the underlying. Higher volatility raises the chance of large moves, increasing the value of both calls and puts. Less time to expiry reduces option value.
7. Futures positions on HKEX are marked to market:
Answer: Daily, with gains and losses settled through variation margin. The clearing house revalues positions at least daily. Losses must be paid as variation margin; gains are credited.
8. If a client's margin account falls below the maintenance margin, the broker will:
Answer: Issue a margin call to bring the account back to the initial margin level. A margin call asks the client to deposit funds to restore the required margin. If the client doesn't, the broker may liquidate positions.
9. The clearing house for HKEX futures and options is:
Answer: HKFE Clearing Corporation (HKCC). HKCC clears futures and most options traded on HKFE. HKSCC runs CCASS for stock market trades; SEOCH clears stock options.
10. An investor holding a diversified Hong Kong share portfolio fears a market fall. Which futures position hedges this risk?
Answer: Sell HSI futures. Selling index futures gains when the market falls, offsetting losses on the share portfolio (a short hedge).
11. Buying in one market and simultaneously selling in another to profit from a price difference, with little risk, is:
Answer: Arbitrage. Arbitrage exploits mispricing between related markets or instruments, such as futures and the underlying index.
12. A futures price above the spot price of the underlying is said to be at a:
Answer: Premium. Basis = spot − futures. When futures trade above spot, the futures are at a premium (negative basis).
13. Before opening a derivatives account for an individual client, a licensed corporation must, among other things:
Answer: Ensure the client understands the nature and risks of derivatives. The Code of Conduct requires firms to assess a client's knowledge of derivatives and, where the client lacks it, make sure the client understands the risks before dealing.
14. Large open positions above a set level in HKFE contracts must be:
Answer: Reported to HKEX (reportable positions), within position limits. The Securities and Futures (Contracts Limits and Reportable Positions) Rules set prescribed limits and require reporting of large open positions.
15. A futures broker holds client margin deposits. These must be:
Answer: Kept in segregated client accounts. Client money must be segregated under the Client Money Rules and used only for that client's purposes, such as meeting margin requirements.

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Certification guide

Which HKSI papers do you need?: To become an SFC licensed representative (or a relevant individual at a bank), you usually pass three HKSI Licensing Examination papers: Paper 1 on regulation, Paper 7 on financial markets, and one paper for your regulated activity. Here's which one.

Paper 9 exam FAQ

How many questions are on the Paper 9 exam?

40 multiple-choice questions, with a time limit of 60 minutes. Format: closed book, computer-based.

What is the passing score for Paper 9?

70%.

How much does the Paper 9 exam cost?

HK$1,620 in Hong Kong (HK$2,070 at overseas Prometric centres). Fees change, so confirm with the HKSI Institute before you enrol.

Which languages is the Paper 9 exam offered in?

English or Traditional Chinese.

Where do I take the Paper 9 exam?

HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong.

Is this Paper 9 practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full Paper 9 prep is Premium at HK$1,147 a month for this exam.

What's in the premium Paper 9 prep?

3,000 practice questions organized topic by topic (Futures Markets and Contracts: 600; Options: 600; Margining and Clearing: 600; Hedging, Speculation and Arbitrage: 600; Trading Practice and Regulation: 600), 6 full-length timed mock exams of 50 questions, 800 flashcards and 60 comprehensive key notes split across all 5 topics, plus a mistakes bank and the Readiness Score.

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Exam details are summarized from the official candidate information available in October 2026. HKSI Institute changes formats and fees, so confirm with Hong Kong Securities and Investment Institute (HKSI Institute) before you book. HKSIMock is not affiliated with the HKSI Institute or the SFC.

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