Series 3 License

Written by Pete Nicholls
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The Series 3 License exam is the commodities futures contracts license. The National Futures Association (NFA) and other various commodity futures exchanges mandate this exam for anyone who intends to act as an Associated Person, Commodity Trading Advisor, Commodity Pool Operator, Introducing Broker, or Futures Commission Merchant. Exam preparation materials should include information on options and contracts, futures theory, hedging, margin and settlements, CFTC/NFA rules, and handling customer accounts and orders.

The Series 3 License exam has ten categories, however, it is graded in two separate groups: Market Knowledge and Rules/Regulations. The first nine of the categories contain 85 questions about the Market Knowledge Group, while category ten has 35 questions about the Rules and Regulations Group. You will have a two and a half hour time limit to take the exam, and you must attain a 70 percent on each group to pass.

Passing the Series 3 License Exam

There are some great self-study preparation materials that you can purchase to help you pass the Series 3 exam for commodities and futures contracts. Securities training can be rigorous and challenging, but it is necessary in order to carry out the responsibilities you will eventually be entrusted with. In order to act on your clients' behalf, you must be completely knowledgeable about the market, and know inside and out what the rules and regulations are for your state.

Materials for home study can include study textbooks, computer disks, as well as training videos. Usually, textbooks are divided into the same ten categories as the actual exam, which will help you replicate your studying with the actual format of the test. Computer disks and training videos are also helpful, and all three study formats provide quizzes and tests to help you monitor your progress and strengthen your weak points.


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