If you need help studying for the Series 3 exam or just want some more information about what the exam is like, you’ve come to the right place.
Click below to take a free Series 3 practice exam!
What’s on the Series 3 Exam?
First, let’s talk about the questions on the test. There are 125 multiple-choice questions total, but only 120 of the questions will count toward your score. Why is that?
The 5 unscored questions on the Series 3 exam are called “experimental” questions. These are added to the tests to determine if they’re good enough questions to add to future versions of the test.
The trick is that you won’t have any way of knowing which questions are scored and which ones are experimental. They will appear just like the scored questions throughout the test.
The time limit for the exam is 2.5 hours. There aren’t any scheduled breaks, but you’re free to take restroom breaks as needed.
Let’s take a closer look at the two main parts of the Series 3 exam.
PART 1: MARKET KNOWLEDGE
~85 scored questions
- Futures trading theory
- Basic functions terminology
- Futures margins
- Options premiums
- Price limits
- Futures settlements
- Delivery, exercise, and assignment
- Types of orders
- Customer accounts
- Price analysis
- Basic hedging
- Basis calculations
- Hedging futures
- Spreading
- Speculating in futures
- Option hedging, speculating, and spreading
PART 2: REGULATIONS
~35 scored questions
- General
- Arbitration procedures
- NFA disciplinary procedures
- FCM/IB regulations
- CFTC Commodity Exchange Act enforcement
- CPO/CTA
How to Register
To get started with the registration process, you’ll need to fill out an enrollment form from the NFA. This will give you access to their online registration system.
A testing fee of $140 will need to be fully paid before you can sit for the exam.
Series 3 Study Guide and Flashcards
Get practice questions, detailed study lessons, and complex subjects broken down into easily understandable concepts.
Exam Scores
The test is scored using a the Angoff method. Here’s how it works:
The Angoff method involves a group of subject-matter experts taking an educated guess at the percentage of candidates who would correctly answer each question on the test. These estimates are then averaged to set a cut-off score, which test-takers must meet or exceed to pass.
This method aims to ensure the pass threshold reflects the level of knowledge or skill that is deemed minimally acceptable for a particular profession or field.
To pass, you’ll need to answer at least 70% of the questions correctly.
Retaking the Exam
If you didn’t get a passing score on your first try, that’s okay! You can retake the test after a 30-day waiting period.
Keep in mind that you will have to pay the full testing fee every time you retake the test.
FAQs
How many questions are on the Series 3 exam?
The exam contains 125 questions.
How hard is the Series 3 exam?
The Series 3 exam isn’t a super challenging exam, but it does require a decent amount of studying beforehand.
How long is the Series 3 exam?
The time limit for the exam is 2.5 hours.
What is the passing score for the Series 3 exam?
You’ll need to answer at least 70% of the questions correctly to pass.
How much does the Series 3 exam cost?
The testing fee is $140.