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Series 3 Test BreakdownA career as a commodities and futures trader is certainly not for everyone, but if you've got what it takes to make it in the fast paced world of futures trading, it can be an extremely lucrative profession. The first step to a job in the world of commodities trading is taking and passing the Series 3 National Commodities Futures Examination. Passing the Series 3 test is required by the National Futures Association for anyone entering the field as a Commodity Trading Adviser (CTA), or as an Introducing Broker (IB). The test itself is actually administered by the Financial Industry Regulatory Authority. The Series 3 exam may be taken weekdays and Saturdays throughout the year at various locations in larger cities all over the country. It costs $95 to take the test, and there is a two and a half hour time limit.
The test format is multiple choice, and there are 120 questions as of this writing. A passing grade is seventy percent or higher. The Series 3 exam is a two part test. The first part contains questions on the theory of futures trading, and basic functions and terminology. This is where you'll demonstrate your knowledge of the actual mechanics of trading futures and commodities. Some of the topics covered are what a premium is, what out of the money, at the money, and in the money mean, what hedging means, definitions of terms such as spreads and deltas, how contracts are traded and delivered, plus much more along the same lines. The second part of the Series 3 test covers regulations you'll need to be familiar with and required to follow. There are many regulations and laws covering commodities and futures trading, most of them set by the National Futures Association, and you'll be required to demonstrate a well rounded knowledge of them to pass the test. Click Here for
Series Test Breakdown
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