Series 3 Exam

I don't use AI to create posts for LinkedIn, it seems disingenuous to be giving out advice that you could get by typing in a prompt.

But a client recently asked me if the Perfectly Hedged LLC online course would help them with their Series 3 exam. Having never taken the Series 3, I wasn't sure how to answer. So enter AI...

Your modules directly reinforce several core areas tested on the Series 3:

𝟭. 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀
Series 3 requires understanding:
▪️How futures contracts work
▪️Margins, IM/VM, settlement
▪️Contract specs, tick values, mark-to-market
▪️Hedging vs speculating

Your modules give:
▪️Deep practical explanations of how futures function in real hedging
▪️Real examples across metals, shipping, FX
▪️Margin mechanics and the reality of managing P&L swings

This makes the “Futures” half of the Series 3 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵𝘭𝘺 𝘦𝘢𝘴𝘪𝘦𝘳.

𝟮. 𝗛𝗲𝗱𝗴𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 & 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
Series 3 expects knowledge of:
▪️Simple hedges
▪️Basis, spreads
▪️Cross-hedging concepts

You teach:
▪️Outright hedging
▪️Spread structures (CME/LME arbitrage, calendar spreads)
▪️Basis risk in real trading flows
▪️Hedge cards + exposure management

This is far more advanced than what the exam covers, so candidates end up comfortably over-prepared on these topics.

𝟯. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗣𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝗻𝘁𝘀 & 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗨𝘀𝗲 𝗼𝗳 𝗗𝗲𝗿𝗶𝘃𝗮𝘁𝗶𝘃𝗲𝘀
Series 3 asks about:
▪️Producers vs consumers vs speculators
▪️Why hedging exists
▪️What commercial users actually do

Your modules:
▪️Explain the internal mechanics of producers, consumers, and traders
▪️Show real trade flows and real commercial motivations
▪️Explain why traders hedge one side but not the other, timing mismatches

Most Series 3 study guides lack this real-world grounding.

𝗪𝗵𝗲𝗿𝗲 𝗣𝗛 𝗠𝗼𝗱𝘂𝗹𝗲𝘀 𝗗𝗼 𝗡𝗼𝘁 𝗥𝗲𝗽𝗹𝗮𝗰𝗲 𝗦𝗲𝗿𝗶𝗲𝘀 𝟯 𝗦𝘁𝘂𝗱𝘆
These are the gaps where a candidate would still need a formal Series 3 prep:

𝟭. 𝗖𝗙𝗧𝗖 + 𝗡𝗙𝗔 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗥𝘂𝗹𝗲𝘀
Series 3 includes:
▪️NFA rules
▪️Reporting requirements
▪️Ethics
▪️Record-keeping
▪️Disclosure documents
▪️Registration categories

Your modules do not teach:
▪️The rule numbers
▪️The exact compliance requirements
▪️Exam-style regulatory definitions

𝟮. 𝗢𝗽𝘁𝗶𝗼𝗻𝘀 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 & 𝗚𝗿𝗲𝗲𝗸𝘀 (𝗮𝘀 𝘁𝗵𝗲 𝗲𝘅𝗮𝗺 𝗱𝗲𝗳𝗶𝗻𝗲𝘀 𝘁𝗵𝗲𝗺)
Series 3 tests:
▪️Basic option payoff diagrams
▪️Delta, gamma (conceptually)
▪️The impact of volatility on premium

You teach:
▪️Options conceptually within risk management
▪️But not the simplified exam-style mathematical approach

𝟯. 𝗘𝘅𝗮𝗺-𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗙𝗼𝗿𝗺𝗮𝘁𝘀
The Series 3 has:
▪️Trick phrasing
▪️Specific terminology
▪️Intentionally confusing answer patterns

🎯 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲
PH modules:
⭐ Massively help candidates understand the subject matter
⭐ Make Series 3 content feel intuitive instead of abstract
⭐ Give real-world context exam guides can’t provide