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Series 3

The US qualification exam for individuals soliciting futures or options-on-futures business, required for most associated persons, CTAs and CPOs.

The Series 3 covers futures and options mechanics, margin, hedging, spreads, regulations and the disclosure obligations of futures professionals. It is administered for the nfa, and passing it is the normal route to registering as an associated person of an introducing-broker or futures-commission-merchant, or as a commodity-trading-advisor or commodity-pool-operator.

Restricted alternatives exist for people dealing only in a narrow product set, such as the retail forex exam for firms in that market.

The exam's regulation section is heavier than most candidates expect. Disclosure documents, hypothetical-performance-disclaimer rules, and the boundaries of permissible promotional material appear repeatedly, which reflects where enforcement actually happens.

Related: commodity-trading-advisor, commodity-pool-operator, nfa-member, futures-commission-merchant, hypothetical-performance-disclaimer

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