The Series 3 math, made simple.

If people fail the Series 3, it's usually Part 1's math. The good news: it's not hard math — it's the same handful of calculations repeated with different contracts. Master the pattern once and Part 1 gets a lot friendlier.

The one pattern to learn

Every futures P&L comes down to: price change × contract size = dollars. So the only thing you truly have to memorize is each contract's size and tick value. Get those cold and the arithmetic is easy.

The four contracts that show up most

• Corn — 5,000 bushels, priced in cents per bushel. A 1-cent move = $50 per contract (5,000 × $0.01). Minimum tick ¼-cent = $12.50.
• Treasury bond — $100,000 face, quoted in points and 32nds. 1 full point = $1,000; 1/32 = $31.25.
• Gold — 100 troy ounces. A $1 move = $100 per contract; a $0.10 tick = $10.
• Eurodollar — $1,000,000 face, 3-month. 1 basis point (0.01) = $25. (Eurodollar futures were retired in 2023 and replaced by 3-month SOFR futures — same $1M size and $25-per-basis-point math. You'll still see "Eurodollar" in Series 3 study materials, so know both.)

Contract specifications can change — verify current sizes and tick values with the exchange.

Worked examples

Corn

You buy 1 corn future at 450 and sell at 462 — a 12-cent gain. 12 × $50 = $600 profit.

Treasury bond

You go long a T-bond at 98-16 (98 and 16/32) and sell at 99-16 — that's a 1-point move. 1 × $1,000 = $1,000 profit.

Gold

Short 1 gold at $1,950 and it falls to $1,910 — a $40 favorable move. 40 × $100 = $4,000 profit (you're short, price dropped).

Eurodollar

Long a Eurodollar contract that moves 8 basis points in your favor: 8 × $25 = $200 profit.

Exam-day tips

• Memorize the specs first. If you know the tick values cold, half the work is done before you read the question.
• Watch the units. Corn is cents; bonds are 32nds; gold is dollars. Mixing them up is the most common mistake.
• Mind the direction. Short positions profit when price falls — read whether the trader is long or short.
• Practice under the clock, because the challenge is doing this quickly, not once.

The fastest way to make this automatic is reps — our bank has hundreds of P&L questions with worked solutions. Try some on the free practice page.