Series 3 Practice Exam
Series 3 practice exam covering commodity futures markets and NFA/CFTC regulations. 120 questions. Must score 70% on each part.
Series 3 -- National Commodities Futures Exam
120 scored questions, 2.5 hours, 70% required on EACH part separately. Administered by FINRA on behalf of the NFA. No firm sponsorship required. Qualifies you to solicit or advise on commodity futures and options on futures.
Practice by Series 3 Domain
Target a specific area, or launch the full exam below
Market Knowledge
Futures pricing, basis, hedging strategies, speculation, options on futures, margin, and spread trading. ~85 questions on the real exam -- the larger part.
Regulations
CFTC authority, NFA rules, FCM and IB requirements, customer segregation, position limits, anti-fraud rules. ~35 questions. Must pass this part separately.
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Full Series 3 Practice Exam
120 questions weighted to match the real exam -- ~85 market knowledge and ~35 regulations. Remember: you must score 70% on each part separately to pass.
About the Series 3 Exam
The Series 3 National Commodity Futures exam is administered by FINRA on behalf of the National Futures Association (NFA) and is required to solicit orders for commodity futures contracts and options on futures. Unlike most FINRA exams, the Series 3 does not require firm sponsorship — anyone can register and take it independently. It qualifies you to work as an Associated Person (AP) at a Futures Commission Merchant (FCM), Commodity Pool Operator (CPO), or Commodity Trading Advisor (CTA).
The exam contains 120 scored questions split into two parts: Part 1 (Futures Trading Theory — 85 questions) and Part 2 (Regulations — 35 questions). You must score at least 70% on each part separately — a high score on one part cannot compensate for a low score on the other. The time limit is 2 hours 30 minutes.
Series 3 Exam Topic Breakdown
| Section | Questions | Key Topics |
|---|---|---|
| Part 1 — Futures Trading Theory | 85 | Futures contracts, hedging, speculation, commodity pricing, options on futures, spreads, technical and fundamental analysis |
| Part 2 — Regulations | 35 | NFA rules, CFTC Act, FCM/CPO/CTA registration, customer funds, segregation requirements, supervision |
Sample Series 3 Exam Questions
1. A corn farmer expects to harvest 50,000 bushels in October. To protect against a decline in corn prices, the farmer should:
2. A trader buys a March corn futures contract at $4.50/bushel and simultaneously sells a May corn futures contract at $4.65/bushel. This position is best described as a:
3. Under NFA rules, customer funds held by a Futures Commission Merchant (FCM) must be:
Study Tips for the Series 3 Exam
The dual-part passing requirement is the most important thing to understand about the Series 3. Many candidates fail by scoring 75% overall but below 70% on the regulations section. Allocate dedicated study time to Part 2 regulations — NFA registration requirements, customer fund segregation rules, and prohibited practices — even though it has fewer questions.
For Part 1, master hedging mechanics (who hedges by buying vs. selling futures), the pricing relationship between spot and futures (basis, cost-of-carry), and options on futures (calls vs. puts, intrinsic vs. time value, option strategies). Spread trading — both calendar spreads and intermarket spreads — appears consistently. The Series 3 is primarily conceptual rather than mathematical, but know how to calculate basic P&L on futures positions and options payoffs.
Entering securities rather than futures? Start with the SIE exam — which, like the Series 3, requires no firm sponsorship — followed by a top-off exam such as the Series 7.
Frequently Asked Questions — Series 3 Exam
Do I need firm sponsorship to take the Series 3?
No. The Series 3 is one of the few FINRA exams that does not require firm sponsorship. Anyone can register through FINRA's online system and take the exam independently. This makes it useful for individuals entering the commodity futures industry who want to demonstrate qualification before being formally hired.
What is the passing requirement for the Series 3?
You must score at least 70% on each of the two parts separately. Part 1 (Futures Trading Theory) has 85 questions — you need 60 correct. Part 2 (Regulations) has 35 questions — you need 25 correct. A high score on one part cannot offset a low score on the other.
What licenses can I get with the Series 3?
The Series 3 qualifies you to act as an Associated Person (AP) at a Futures Commission Merchant (FCM), Commodity Pool Operator (CPO), or Commodity Trading Advisor (CTA). You can solicit orders for commodity futures and options on futures. It also qualifies for introducing broker (IB) registration with the NFA.
What is the difference between the Series 3 and the Series 34?
The Series 3 covers commodity futures and options on futures. The Series 34 (Retail Off-Exchange Forex exam) covers the retail foreign currency exchange market. Both are NFA-related exams. If you want to deal in both commodity futures and retail forex, you need both licenses.
What is a Futures Commission Merchant (FCM)?
An FCM is a firm that solicits or accepts orders to buy or sell futures contracts and accepts money or securities from customers in connection with those orders. FCMs must register with the CFTC and be members of the NFA. Examples include futures brokerages and clearing firms. FCMs are required to segregate customer funds from firm funds.
How long is a Series 3 license valid?
A Series 3 registration remains valid as long as you are registered with the NFA as an Associated Person. If you terminate your NFA registration, the Series 3 qualification expires after a 2-year period. If more than 2 years have elapsed since your last registration, you must retake the exam before re-registering.
What is the difference between hedging and speculation in futures?
A hedger uses futures to reduce the risk of an existing or anticipated exposure in the physical commodity (e.g., a farmer selling futures to lock in a price). A speculator uses futures to profit from price movements without a corresponding physical position — accepting risk that hedgers want to transfer. Speculators provide liquidity and price discovery to futures markets. Both roles are heavily tested on the Series 3.