Series 31 Exam

The futures and commodities industry has brokers and traders with various required licenses. The Series 3 – Series 30 and the Series 31. The 31 is the Futures Managed Fund License. It is a fairly short 45 question multiple choice test that is taken on computer and the results are given at time of completion. The Series 31 exam does not require company affiliation prior to taking the exam. Other Broker license exams do. The Series 31 can be taken by registering through American Investment Training and using the U-10 form. The form can be sent out with the training course by request.

When and where can the test be taken?

Once your registration has been received and completed, you can take the exam at Prometric test centers based on seat availability and the nearest test center to you. The Series 31 is available to be taken daily. Monday to Saturday are usually the open days.

The positives to getting this license include having a license “in hand” when you are seeking employment in the futures and commodities industry. Futures firms consider having licenses obtained prior to seeking a broker or trader position a big plus. This also holds true for the Series 3 and Series 30 exams. The Series 3 in the primary license to trade in the futures and commodities markets. It is also a more comprehensive exam than the 31. They are separate licenses with different functions, so it is best to get both. Having the 3 and 31 allows you to qualify for more positions at the firm.

Series 31 Topics

The 31 test includes all relevant topics including:

General market knowledge

1. Definition and significance of

– Margin

– Futures and forward contracts

– Price limits

– Open interest

– Offsetting contracts

– “Marking-to-market”

– Settlement

– Spread trades

– Basis

– Hedging

– Yield curve

– Cost of carry

– Leverage

– Price volatility



Disclosure Statements

Customer Account Rules

If the exam is failed, the student must wait 30 days before re-taking the exam. If the test is failed 3 times, the student must wait 6 months.

Keys to Passing the Test

As with most broker exams, studying consistently and passing accurate practice exams will help you pass the test on the first attempt. Since the test is short and not as complex as the Series 3 or certainly the Series 7 (General Registered Representative License), 2-3 weeks of consistent study time and passing the practice tests can give you the edge to passing the Series 31.

Test centers are available nationwide with most state having a center within close distance to most test takers.

Consider the Series 31 before entering the futures and commodities industry. Series 31 Study Material is available.

Best of luck in your career!

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