Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

The main feature of most futures contracts being completely fungible refers to their uniformity and standardization across the market. This characteristic allows futures contracts to be easily traded and substituted without any discernible difference in value. Each futures contract of a specific commodity has the same size, deliverable quality, and expiration date, making them interchangeable among market participants.

This high level of standardization facilitates liquidity, which is a critical advantage in the derivatives market. Traders can enter and exit positions with relative ease due to the uniform nature of these contracts, thereby ensuring that they can find buyers or sellers at any time during trading hours.

In contrast, the other choices do not capture the defining feature of futures contracts. While they may have trading hours that are constrained during certain periods, this is not a defining feature that sets them apart from other financial instruments. Moreover, futures contracts are indeed regulated by various bodies to ensure market integrity and protect participants. Finally, while they do offer high leverage, this aspect does not relate to their fundamental characteristic of fungibility.