In the world of finance, the Series 3 or The National Commodities Futures Test is known as an advance level test designed to ensure you have mastered the required amount of financial information to engage in futures industry work or a related role.
In order to pass this examination, it’s important that you know what preparations to make for the rigors of exam day. To help you with this, we’ve come up with the following easy-to-follow Series 3 exam preparation tips:
1. Access the best Series 3 study materials
Make sure you find the best and latest Series 3 study materials, including a comprehensive text and question bank. Since industry guidelines and practices sometimes undergo changes, you need to avoid relying on dated materials. If you have access to an instructor or an in-person preparation class, we encourage you to take advantage of these options as you’ll come out better prepared and confident.
2. Know what’s exactly covered in the exam
There are plenty of resources regarding what the Series 3 exam covers, both online and offline. Strive to understand the most important aspects of the two-part Series 3 exam, which include the following:
Part 1: Basics of the Futures Markets
- Futures 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 and basic calculations
- Spreading and speculating in futures
- Option hedging, speculating, spreading
- Option spread strategies / calculations
Part 2: Market Regulations
Make sure to not only read the required textbook but also take as many practice test sessions as you can to build familiarity, confidence and speed.
Keep in mind that you only have two-and-a-half hours to finish the entire exam, so you should also learn to prioritize certain items over others. During your practice sessions, try to time how much you typically spend on certain questions. Which topics do you find the most difficult to answer? By identifying these, you can focus more on understanding them so you have a better chance of attaining and perhaps even exceeding the 70% you need for each exam part.
3. Follow a foolproof system
If you are taught to follow a system or strategy in your Series 3 review class, master it by heart. The system is there for a reason, and it’s designed to help you finish the test in a methodical manner. Avoid taking shortcuts or making impromptu decisions. What you can do is implement it in your practice tests to see how well it can work for you.
4. Apply exam best practices on test-taking day
Just as you were advised when you were younger to read questions fully before answering, be sure to apply the same in your Series 3 exam. Read each question completely – twice if possible – before answering. In multiple-choice tests, consider each choice carefully before selecting your final answer. If you’re undecided, use the process of elimination until you arrive at the best answer. And don’t go changing your answers without a valid reason. Your first instinct is usually the best.
Taking the Series 3 exam is guaranteed to be stressful. However, you can ease your psychological burden come test day by following these tried and tested Series 3 exam preparation tips from Financial Standards.
But if you’re currently looking for a professional and reliable in-person Series 3 test preparation class, we can help you. Our two-day Series 3 exam course will expose you to real-world expertise. It includes a six-month subscription to PassMaster – a comprehensive, Web-delivered program designed to help students tailor study time to their needs. The course also comes with a tutorial (test questions and answers) and a Series 3 Exam Simulator for those who wish to become members of the National Futures Association.
Reach out to us today.