Series 3 Practice Exam 1

This Series 3 practice exam is designed to introduce you to the core concepts tested on the Uniform National Commodity Futures Examination. This set of questions covers key topics such as futures contracts, options fundamentals, margin requirements, and basic regulatory principles. Work through each question carefully and review the detailed explanations to build a strong foundation for the rest of your Series 3 exam prep.

Series 3 Practice Exam 1

Series 3 Practice Exams

Series 3 Practice Exam 1

Quiz Summary

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1. Question

Which of these positions describes a long hedge?

2. Question

Which of the following is true of position traders?

3. Question

A trader owns 4 wheat contracts and sells them for a profit of $0.15/bu. The total commission is $90 and the contract size is 5,000 bushels. What is the trader’s profit?

4. Question

Markets are inverted when:

5. Question

When setting up a new account, FCM’s must obtain the customer’s previous investment and futures trading experience.

6. Question

How many years do NFA members need to retain financial and compliance records?

7. Question

Soybean futures contracts are quoted in which of the following?

8. Question

Which types of contracts are standardized and exchange-traded?

9. Question

An inverted yield curve is formed when short-term yields fall below long-term yields.

10. Question

A put with a strike price of $4.20 was purchased by your client at 5 cents. The underlying futures price is now $4.10. What is the intrinsic value of the put?

Next: Series 3 Practice Exam 2