Investor's wiki
en English
Navigation
Home Glossary
InvestingStocksBondsCryptoPersonal FinanceFundamental AnalysisTechnical AnalysisTradingBankingTaxes
Disclaimer Terms of Use Privacy Policy Cookie Policy
Navigation
Home Glossary
InvestingStocksBondsCryptoPersonal FinanceFundamental AnalysisTechnical AnalysisTradingBankingTaxes
Disclaimer Terms of Use Privacy Policy Cookie Policy

Series 34

Series 34
CareersDegrees and CertificationsFinra Exams

The Series 34 is an exam and license required for individuals seeking to participate in off-exchange forex transactions with retail customers. It is part of the registration and certification process for most forex managers, dealers, and intermediaries.

Breaking Down Series 34

The Series 34 Exam, otherwise called the Retail Off-Exchange Forex Examination, is a National Futures Association (NFA) exam administered by the Financial Industry Regulatory Authority (FINRA). After finishing the exam, an individual is known as a 'forex AP,' or 'forex Associated Person.'

As per the NFA, getting Series 34 certification is required of anybody seeking approval as a forex firm or forex individual before participating in off-exchange retail forex except if they have previously passed the Series 3 (National Commodities Futures Examination) or the Series 32 (Limited Futures Examination-Regulations) exams. They likewise must have passed the Series 34 inside the previous two years or have been constantly registered with a NFA member firm in the wake of passing the Series 34 without a registration lag of over two years.

Series 34 Exam Content

The Series 34 Exam comprises of 40 different decision questions. Up-and-comers have an hour to complete it. To finish the exam, the applicant must get something like 28 inquiries right to accomplish a passing score of 70%.

The accompanying addresses a sample rundown of major subject regions covered by the Series 34 Exam, however it isn't comprehensive:

  • Segment A: Definitions and Terminology - American/European Terms; Base, quote, terms and secondary cash; Bid/ask spread; Collateral, Regulated elements listed in the Commodity Exchange Act; security deposit, edge; Cross rates, crosses and coordinates; Direct and indirect quotes; Exchange rate; Forward Points; Forward rate/bid forward rate; Interest rate differential and parity; Mark-up and stamp downs; PIPs; Rollovers; Spot rate/price; Trade/Settlement date; Swaps.
  • Area B: Forex Trading Calculations - Cross rate transactions; Effects of leverage estimations; Netting of positions; Open trade variety; Profit and loss computations; Pip value, price after pips; Return on collateral. security deposit; edge; and Transaction costs.
  • Segment C: Risks Associated with Forex Trading - Country/sovereign risk; Credit, exchange rate; interest rate, liquidity, market, operational risk; Settlement, and Herstaat risk.
  • Segment D: Forex Market - Concepts, Theories, Economic Factors and Indicators, Participants: Balance of payments; Balance of trade; Bank for International Settlements (BIS); Capital account and current account; Central bank activities, intervention, sterilized intervention; Clearing House Interbank Payment System (CHIPS); Discount rate; Economic indicators: employment, consumer spending, income, industrial and inflation indicators; Elasticity of exchange rates; Exchange rate intervention; Exchange rate unpredictability; Federal Reserve Board, Fedwire; Fiscal approach; Fisher impact; Foreign investment indicators; Gross national product, gross domestic product; Inflation; Interbank funds transfer and settlement systems; International Fisher impact; International Monetary Fund; Portfolio balance; Role of central banks; Theory of flexibilities; Theory of purchasing power parity and the World Trade Organization.
  • Area E: Forex Regulatory Requirements - CFTC Regulations, including: Close out of offsetting positions, Disclosure of profitable versus non-profitable accounts, Prohibition of guarantees against loss, Registration requirements, Re-citing, Security deposits, Specific authorization for trades; CFTC jurisdiction and jurisdictional constraints; Conflicts of interest; Disclosures to customers; Jurisdictional and regulatory structure; Know your customer; NFA Interpretive Notices, including: The Allocation of Bunched Retail Forex Orders for Multiple Accounts, Forex Transactions, Requirements for Forex Transactions, Supervision of the Use of Electronic Trading Systems, Prohibition on the Use of Certain Electronic Funding Mechanisms (Effective January 31, 2015); NFA membership and associate membership requirements; Promotional material and sales; Reports to customers, confirmations, month to month synopses; Security deposit rules; Security of customer funds, no segregation.