American Investment Training

Thursday, December 24, 2015

How To Become a Futures Broker or Trader

Learn to be a futures and commodities broker. Pass the Series 3 Exam with American Investment Training. 


Preparing for the series 3 exam usually takes 6-8 weeks of 1-2 hours per day home study. The exam is a multiple choice test. The exam includes the following topics:
  • Definitions and introductions to cash contracts, forward contracts 
  • Understanding strategies and calculating gain and loss
  • Options, Futures and Hedging
  • Calculating initial margin deposits and additional margin
  • Trading floor procedures and understanding functions of traders and brokers
  • NFA (National Futures Association) rules and regulations
  • Reporting rules and customer accounts
You must answer 70% of the questions correct to pass the Series 3 exam. The test has 120 questions. There are no license pre-requisites before registering for this exam. Prior financial knowledge and experience is not required for you to pass the exam. There is some math, but it's not too difficult once you see how trading and calculating gains and losses are shown. Understanding how margin and commissions work is a key, as they are important factors in answering the question correctly.

The exam is given on computer administered by Pearson testing centers. There are hundreds of these test centers across the country. You must register for the exam through FINRA prior to taking the Series 3 test. The Series 3 can be taken at most centers 5 days a week. Meaning, once you are registered to take the exam, you can reserve any of the week you want.

90% First Time Pass Rate

Friday, October 23, 2015

Series 31 Overview - Topics covered for the Series 31

The Series 31 exam is the futures managed funds license created by the National Futures Association. It is a 45 question exam that includes true and false questions.

The topics covered include:

General Market Knowledge
NFA Regulations
CPO and CTA Regulations
CPO and CTA Disclosure Statements
Know your customer rules
Fees by CPO and CTA Persons
Sales Material

General Market Knowledge covers most of the exam but all of the topics need to be understood to pass the test.

Study time is under 1 month

No sponsor is required

Get your Series 31 license by studying our online course now.


Only $57 with full support and start right away.

Monday, October 12, 2015

Types of Risk for Futures Traders

There are several types of Risk discussed on the Series 3 Exam and Futures License Tests

Transfer Risk
Liquidity Risk
Reduction Risk

Transfer Risk is the possibility of a loss when the position may require a transfer of securities or futures. Example would be Writing Calls or other contract where an obligation lies to another contract holder on the Buy Side.

Liquidity Risk is the Risk of how quickly a position can be turned into Cash - or how slowly. Liquidity is the Cash position the trader is in.

Risk Reduction can be achieved by reducing exposure through hedging a position against a loss or placing a stop order or other floor protection order.


Course material for all FINRA, NASAA and NFA Brokers and Principals. 

Wednesday, September 23, 2015

Series 3 No Sponsor Needed - Self Sponsorship for Exam

This was our latest newsletter for people looking to become futures and commodities brokers. You can sign up FREE on the right side bar of the blog for regular Broker News Updates.

Hello all to our FREE subscribers.

Since the age of day trading and investors of stocks using brokers less and less - on a transaction basis, traditional FINRA Series 7 brokers have found their incomes drop except those that work on FEES or % of assets managed vs transactions. Also the most successful brokers/advisers have a diversified business. Most Investors DO NOT understand or feel comfortable in the commodities - futures arena.

If you want to trade for WHALES! and actively, the market is in international commodities. Global Clients are waiting.

The License you need is the SERIES 3 - and this license does not require Sponsorship or Employment beforehand.

You can prepare and take this exam Mon-Sat on your own at hundreds of test centers in the U.S and International locations. Study Prep time is 1 month or less.

*** Futures and Commodities is rarely a "buy and hold" market. More Trading means More $ for you. ***

American Investment Training provides all students who begin the course with the registration form to take the exam whenever you are ready and the nearest test center locations to you. We also offer support during your study Prep. The Series 3 also looks great on a resume if you want to join a Futures and Commodities Firm.  It's a BIG inter-market world out there. Learn to trade commodities and futures of all types. Gold, Silver, Oil and much more.

Study Prep can be online or Books and Software. Start Now and see. NO PRIOR KNOWLEDGE NEEDED.  Also PERFECT for Self Traders who want to trade 24/7, if that is what you would like to do. WHY NOT LEARN WHAT BROKERS HAVE TO LEARN? Practical Strategies Included. Click below to view study options: 

for updated text manual and test generator CD.

MASTER the World Commodities and Futures Markets for More Commission and Action. Don't play Poker at 2:00am, Trade where exchanges are open and it's always open Somewhere!

Thank You,
American Investment Training

Thursday, September 3, 2015

Option Contracts - In the money and Intrinsic Value

Option contracts for the Series 3 exam. This post will discuss option contracts that are either in or out of the money. The Series 3 Licensing test will ask questions on this topic. The Series 7 exam will as well

in, at or out of the money

Call Options

A call option is purchased when a trader or investor anticipates the futures price to rise during the life of the contract.

A call option gives the holder the right to purchase the commodity at a specific price regardless of the price in the market. That price is called the strike price. The contract will cost a premium.

"in the money"

when the futures price, whether it's Gold or other commodity is higher than the strike price of the call option, that difference is the in the money amount. "in the money" does not mean profit. It could, but the in the money term is the difference only between the futures price in the market and the strike price. If a high premium was paid that exceeds that difference, the call is still in the money. If the option is in the money, the option is said to have "intrinsic value". So, for a call
the futures price minus the strike price is the intrinsic value.

"out of the money"

This is the opposite of in the money. For calls - since the purpose is the hope that the market will rise above the strike price, when it does not or fall below the strike price that difference would be the out of the money amount. You can profit several ways from a market decline (shorting the commodity, shorting the call, buying put options), but if you are long (buyer) of call options, a profit will only be there if the market rises. As with the in the money example, the premium does not play a role with in, at or out of the money. There is no intrinsic value for out of the money contracts. Regardless of the negative number, the Intrinsic Value will be ZERO.

"at the money"

When the commodity is the same price as the strike price, the call (or put for that matter) is considered "at the money".

These concepts all play into the marketabililty of the contract during it's life. Meaning, an option can be exercised, allowed to expire or they can be sold - traded at the current market price of the option. The is the sell side (bid) premium. If the investor feels the call option has little shot to recover it's profit possibility, he or she may want to trade out of it before it expires. Most options will decline in price as the expiration date nears.

All of these terms are tested on the Series 3 Exam, Series 7 Test or any NFA FINRA Exam where Options are part of the exam outline.

Series 3 Book and CD Combo Course

Online Series 3 Training

Sunday, August 30, 2015

Introduction to the Series 3 Exam - Futures and Commodities License

The Series 3 is the Commodities and Futures contracts certification license. American Investment Training offers course materials to pass the Series 3 Exam. This license is for Futures and Commodities trading. Series three brokers represent customers in futures and commodities trading. Transactions take place on specific futures exchanges.

The Series 3 is a 120 question Multiple choice exam that includes True and False Questions

The exam basically breaks down into 8 sections

1 - Futures Trading and Theory

2 - Margins, options contracts and premiums - including all facets of futures options contracts (expiration rules and time, exercising and trading)

4 - Customer Orders

5 - Spread contracts

6 - Future Speculation

7 - Hedging for protection and income

8 - Rules and Regulations from the NFA National Futures Association

Series 3 Passing Grade

To pass the Series exam, you must pass 2 sections and get a score of 70% or more. If you fail the test, you must wait 30 days.

American Investment Training and our partners provides Series 3 Online Courses

You do not need a sponsor firm to take the Series 3, Series 30, 31, 34 or any NFA Futures Exam.
American Investment Training provides all of our students with the self registration form and full support to get set up and take the exam.

Course Options:

Series 3 Book and Software Training - Updated with fast delivery worlwide

Online Course with no books required - Start right away from anywhere in the world.

Study time can vary but normally we suggest allowing 4-6 weeks