DFC is a derivatives fundamentals exam with a strong emphasis on futures (40%) and exchange-traded options (42%). Most questions reward clear thinking about:
- linear vs non-linear exposure (futures vs options)
- pricing intuition (cost of carry, option premium drivers)
- hedging intent vs speculation intent
- reading quotes correctly and avoiding sign/moneyness mistakes
Official exam snapshot (CSI)
- Exam format: Proctored (remote or in-person at a test centre)
- Exam duration: 2 hours
- Question format: Multiple-choice
- Questions per exam: 65
- Passing grade: 60%
- Attempts allowed: 3
- Hours of study (CSI guidance): 60 – 90 Hours
- Enrolment period: 1 Year
Source: https://www.csi.ca/en/learning/courses/dfc/exam-credits
Official topic weightings (DFC)
Because the exam has 65 questions, we convert CSI’s weightings into target question counts (rounded so the totals sum to 65).
| Topic (CSI) | Weight | Target questions | CSI chapters (curriculum) |
|---|
| An Overview of Derivatives | 3% | 2 | 1 |
| Futures Contracts | 40% | 26 | 2–11 |
| Exchange-Traded Options | 42% | 28 | 12–17 |
| Swaps | 8% | 5 | 18–22 |
| How Investment Funds and Structured Products Use Derivatives | 5% | 3 | 23–26 |
| Operational Considerations | 2% | 1 | 27–28 |
Curriculum source: https://www.csi.ca/en/learning/courses/dfc/curriculum
What DFC is really testing
DFC questions typically test whether you can:
- Translate a position into exposure: what happens when the underlying goes up/down?
- Use basic futures language correctly: contract specs, margin, marking-to-market, basis, convergence.
- Recognize option basics: moneyness, intrinsic vs time value, pricing drivers (incl. delta) and strategy intent.
- Explain swap structure at a practical level (fixed vs floating legs, currency exposure, credit risk concepts).
- Identify why funds/structured products use derivatives (risk management, payoff engineering, replication).
- Name the major risk/control/monitoring considerations at an exam-appropriate level.
Common pitfalls
- Mixing up forward vs futures and forgetting daily settlement (mark-to-market) in futures.
- Sign errors on P/L (long vs short) and mixing up call vs put.
- Confusing intrinsic value, time value, and premium.
- Misreading quotes (contract multiplier, currency quotation convention, option chain fields).
- Overthinking the low-weight operational topics; learn the core terms and controls, then move on.
A simple prep loop
- Use the Syllabus as your checklist.
- After each chapter, review the matching section in the Cheatsheet and write 5–10 “if you see X, think Y” rules.
- Do short, targeted Practice sets (untimed → timed).
- Keep a miss log: every miss becomes a rule, formula, or definition you didn’t truly own.
- End each week with a mixed set to force transfer across topics.
✅ Next: follow the Study Plan or jump to the Syllabus.