How to Study for the Series 3 Exam
It is necessary to pass the Series 3 Exam to work in the commodities and futures market. Passing this exam will allow you to be a commodity pool operator, commodity training adviser, an introducing broker or futures commission merchant. The National Futures Association requires you to pass the Series 3 Exam before beginning to work in this field.
- Difficulty:
- Challenging
Instructions
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1
Study futures trading theory. This section makes up about 10 percent of the exam score and is made up of around 13 questions.
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2
Become well acquainted with margins, limits and settlements. This section of the exam will be about 12 percent or the exam score and includes approximately 15 questions.
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3
Learn about customer accounts. This includes orders and analysis of customer accounts.
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4
Study both basic and financial hedging fundamentals and principals. These two sections account for close to 20 percent of the exam score total.
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5
Understand spreads and options. The Spreads section of the exam is the smallest with around three questions. Expect at least six questions on options on the Series 3 Exam.
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6
Comprehend the fundamentals of both general and financial speculation. These sections combine for a total of 16 to 20 questions.
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7
Memorize regulations. The Regulations section of the Series 3 Exam is, by far, the largest section. Expect around 35 questions on industry regulations, accounting for 30 percent of the exam score.
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1
Tips & Warnings
Make a study schedule and stick to it. This will increase your chances of passing the Series 3 Exam the first time.
Take the test within 120 days of receiving your study materials. This is the recommended industry standard.
Make learning the regulations a priority. You must receive at least a 70 percent on this exam to pass and the Regulations section makes up close to half of this score.
