Paper 9 Exam Study Guide (2026)
Everything the HKSI LE Paper 9: Derivatives tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 40 multiple-choice questions |
|---|---|
| Time | 60 minutes |
| Passing score | 70% |
| Format | Closed book, computer-based |
| Certifying body | Hong Kong Securities and Investment Institute (HKSI Institute) |
| Test provider | HKSI Institute computer-based test centre in Hong Kong, or Prometric centres outside Hong Kong |
Mind map: the whole exam on one screen
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.
1. Futures Markets and Contracts
HKFE futures and how profits are calculated.
Key facts
- Futures are standardized, exchange-traded contracts.
- HSI futures: HK$50 per point; Mini-HSI: HK$10 per point.
- Profit = points × multiplier × contracts.
- Open interest counts outstanding contracts.
- Most index futures are cash settled.
Flashcards
Exam tip: Always multiply by the number of contracts as well as the multiplier.
2. Options
Calls, puts and option pricing.
Key facts
- Buyers pay premium and have rights; writers have obligations.
- Calls are in the money when the underlying is above the strike; puts when below.
- Higher volatility and longer time raise option values.
- Intrinsic value + time value = premium.
- Short calls have unlimited risk.
Flashcards
Exam tip: Draw the payoff; it settles most option questions in seconds.
3. Margining and Clearing
Initial margin, variation margin and clearing houses.
Key facts
- Initial margin is deposited to open a position.
- Positions are marked to market daily.
- Falling below maintenance margin brings a margin call back to initial margin.
- HKCC clears HKFE futures; SEOCH clears stock options; HKSCC runs CCASS.
- The clearing house is the counterparty to every trade.
Flashcards
Exam tip: Margin calls restore the account to initial margin, not maintenance margin.
Test yourself on these topics
Take the free 15-question Paper 9 test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Hedging, Speculation and Arbitrage
Why people trade derivatives.
Key facts
- Short hedge: own the asset, sell futures.
- Long hedge: need to buy later, buy futures now.
Flashcards
Exam tip: Ask what the hedger fears: a fall means sell futures; a rise means buy.
5. Trading Practice and Regulation
Rules for dealing in derivatives for clients.
Key facts
- Assess clients' derivatives knowledge before dealing.
- Explain risks clearly, including margin calls and losses beyond the deposit.
Flashcards
Exam tip: Futures losses can exceed the margin deposited; risk disclosure must say so.
How to pass
- 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.
Frequently asked questions
How long should I study for the Paper 9 exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the Paper 9 exam online?
Yes. Paper 9 can be taken at the HKSI Institute's computer-based test centre in Hong Kong or, for candidates outside Hong Kong, at a Prometric centre (higher fee). Format: closed book, computer-based. Check the HKSI Institute's current candidate information for the rules.
What score do I need to pass the Paper 9 exam?
70%. The exam has 40 multiple-choice questions and a time limit of 60 minutes.
What are the most tested topics?
The outline covers futures markets and contracts, options, margining and clearing, hedging, speculation and arbitrage, trading practice and regulation. Use the free practice test to see which ones you need most.
The premium Paper 9 study path
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.
Your step-by-step study path
- 1Futures Markets and Contracts12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Notes free with an account
- 2Options12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 3Margining and Clearing12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 4Hedging, Speculation and Arbitrage12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 5Trading Practice and Regulation12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.Premium
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- 800 flashcards + 60 key notes per exam, by topic, plus mind maps
- Spaced repetition + mistakes bank
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- Video lessons as they release
- Content updates during your access
- 5 bonuses: key numbers sheet, formula sheet, study planner and more
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Summarized from the HKSI Institute's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Hong Kong Securities and Investment Institute (HKSI Institute).