Free SIE Practice Exam
Series 3
Quiz - 2
Test Your Knowledge

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Series 3 - Quiz - 2

Ready to sharpen your Series 3 skills? Quiz 2 is tailored to help Series 3 candidates master true/false questions and order types essential for the exam. Whether you're a student working with a tutor or preparing on your own, this quiz provides focused practice on key concepts, such as stop orders, limit orders, and market dynamics, alongside clear explanations of regulatory principles. Designed for candidates at any stage of their Series 3 journey, Quiz 2 delivers instant feedback and detailed insights to ensure you understand each topic thoroughly. Use this quiz to boost your confidence and excel on exam day!

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1. A trader holding a long futures position places a sell stop limit order to protect against falling prices. The current futures price is 2500. The trader sets the stop price at 2480 and the limit price at 2475. Below are the market ticks:

2500
2485
2480
2478
2476
2474
2475
2477

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2. To protect against falling prices while specifying the minimum price at which the order can be executed, what type of order should a long futures trader use?

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3. To protect against falling prices and guarantee execution, what type of order should a long futures trader use?

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4. An introducing broker (IB) can fulfill its financial requirement without maintaining its own net capital by establishing a guarantee agreement with a registered futures commission merchant (FCM).

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5. What is the minimum adjusted net capital that an introducing broker (IB) is required to maintain?

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6. What is the minimum adjusted net capital that a futures commission merchant (FCM) is required to maintain?

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7. How many years are NFA member firms required to keep records that support their accounting records, financial statements, and trading activities?

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8. Floor brokers and floor traders are exempt from NFA membership.

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9. True or False:
A seller of a futures contract can deliver the cash commodity at any time before the delivery month specified in the contract.

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10. True or False:
The clearing house settles all positions on a weekly basis, and member firms are required to deposit owed money at the end of the week.

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To further enhance your Series 3 exam preparation, check out our in-depth article on key commodities and futures concepts. If you have any questions, need further guidance, or would like additional practice materials, please use the form below to contact us. Our expert tutors are here to support your journey toward mastering the FINRA Series 3 exam.

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