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Series 3 Study Guide

The National Commodity Futures Examination (Series 3 Exam) offered by the Financial Industry Regulatory Authority (FINRA) grants successful candidates acceptance as members of the National Futures Association (NFA).

The only people who may be exempt from taking the Series 3 exam are those who have completed a comparable examination within two years of their application to the NFA or the candidate is currently registered as a FB. Everyone else must take the Series 3 to be accepted.

Individuals who will take on any of the following roles within a company must take the Series 3 exam:

* Commodity Trading Advisor
* Commodity Pool Advisor
* Broker
* Futures Commission Merchant
The Series 3 exam consists of two separate parts, with the first part broken down into nine separate segments. The first nine segments represent the bulk of the test with 85 multiple-choice questions to be answered. The topics in this section contain all of the following, and possibly more:
* Futures Trading Theory
* Basic Terminology
* Futures Margins
* Options Premiums
* Price Limits
* Futures Settlements
* Types of Orders
* Price Analysis
* Fundamentals of Hedging
* Speculating on Futures

The final section, Part 2, contains one topic – Regulations, including FCM/IB, CPO/CTA, and arbitration measures. Part 2 contains 35 multiple-choice questions. A candidate must achieve a 70% or better on both parts of the two part exam in order to pass. The FINRA charges a $95.00 fee to sit for the exam. The exam is administered at computer based testing centers found throughout the US.

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Series 3 Study Guide

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