Series 3 Exam FAQ & Resources
SERIES 3 EXAM FREQUENTLY ASKED QUESTIONS
Exam Format: 120 multiple-choice questions
Exam Duration: 2 hours, 30 minutes
- Future Trading Theory and Basic Functions Terminology
- Futures Margins, Option Premiums, Price Limits, Futures Settlements, Delivery, Exercise, and Assignment
- Types of Orders, Customer Accounts, Price Analysis
- Basic Hedging, Basis Calculations, Hedging Futures
- Speculating in Futures
- Options Hedging, Speculating, Spreading
Identify key words and phrases
Watch for hedge clauses, i.e., except and not
Identify synonomous terms
Read the full question. Most people do not read the full question. Most of us are conditioned to skim through the information to find out what we are looking for. When you are answering exam questions, read the entire question and read all the answer choices. Then read the last sentence of the question again. The last line will tell you what they want from you as far as an answer.
Use process of elimination. Always eliminate the answer choices that you know cannot be correct.
If you have two choices left, and you're still not sure which answer is right, go with the statistics. If one of the choices you haven't eliminated is all of the above, choose it.
This is one of the keys to outsmarting the Series 3 exam. Statistically, is probably the correct choice.
If you have used process of elimination and one of the choices you have left is none of the above do not pick it. Odds are it's not the correct answer. The test writers for the Series 3 exam like to include a correct answer to trick you.