The Series 3 and Series 34 Exams

Published: 02nd February 2010
Views: N/A

Series 3



The Series 3 exam is conducted by the Financial Industry Regulatory Authority (FINRA). Those who want to sell commodities or futures contracts (and who do not qualify for exemptions) must pass the Series 3 exam. These people will have to register a commodity pool operators (CPOs) with the Commodity Futures Trading Commission (CFTC) and become members of the National Futures Trading Association (NFA). All owners and associated persons (APs) of the manager/CPO will need to pass this exam. The exam features two sections: 1) market knowledge, and 2) market rules/regulations. You will have 2 and a 1/2 hours to answer 120 multiple choice and true/false questions. On each part of the exam, you must score at least 70% in order to pass the entire Series 3 exam.



On the first part of the exam, you will be required to understand the basics of the futures markets, including the futures contracts, hedging, speculating, futures terminology, futures options, margin requirements, types of orders, basic fundamental analysis, and spread trading. There will be 85 questions on this portion of the exam.

On the second part of the exam, you will be required to understand and be familiar with market regulations, including relevant FINRA rules and regulations. There will be 35 questions on this portion of the exam.



You should be as familiar as possible with the following exam topics: futures trading theory; margins, limits, and settlements; orders, accounts, and analysis; basic hedging; financial hedging; spreads; general speculation; financial speculation; options; regulations.

The following terms are useful to know for the exam: bucketing, delta, double top, first notice day, intrinsic value, inverted market, long hedge, offset, scalpers, straddle.



Series 34



The Series 34 is a new exam which will be required by the CFTC for forex managers. There are 40 multiple choice and true/false questions on the exam. You will have 1 hours to take the exam and will have to score 70% to pass.



The questions on the exam can be broken down into the following categories: definitions and terminology (25%), forex trading calculations (20%), forex concepts and theories (25%), forex risks (10%), and forex regulations (20%).



The exam will require you to make numerical calculations, so be prepared to use a calculator on approximately 5 questions.

For more information about the Series 34, or fx exam, including free study guides and test-taking advice, contact a forex lawyer. A hedge fund or forex lawyer can also assist you with CPO registration and CPA registration.

Report this article Ask About This Article


Loading...
More to Explore