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The National Commodity
Futures Exam, or Series 3, tests
a candidate’s knowledge of commodities
futures contracts and options on futures. This
exam is required for registration by
the National Futures Association of those
intending to sell commodities futures
contracts and options on futures.
Any individual who will transact
a member's business in commodities futures
contracts and options on futures must pass
the Series 3 exam.
The Series 3 is a 2 1/2 hour,
120 multiple-choice question exam categorized
as follows:
| Category |
Questions |
% of Exam |
| Part I |
|
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- Futures Trading Theory and Basic
Functions Terminology
|
13 |
11% |
- Futures Margins, Options Premiums,
Price Limits, Futures Settlements,
Delivery, Exercise, and Assignment
|
15 |
13% |
- Types of Orders, Customer Accounts,
Price Analysis
|
9 |
11% |
- Basic Hedging, Basic Calculations,
Hedging Futures
|
21 |
17.5 |
|
|
3 |
2.5% |
|
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16 |
13% |
- Options Hedging, Speculating,
Spreading
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6 |
5% |
| Part II |
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|
|
35 |
29% |
To pass the Series 3, a 70% is required
(84 out of 120 questions must be answered
correctly).
Series 3
Exam Fee: $90
(Effective January 1, 2005)
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