Series 34 Exam: Meaning, Exam Content

The Series 34 is an examination and license required for individuals looking to engage in off-trade forex transactions with retail clients. It is a part of the registration and certification machine for maximum foreign exchange managers, sellers, and intermediaries.

Explaining Series 34
The Series 34 Exam, also known as the Retail Off-Exchange the Forex market Examination, is a National Futures Association (NFA) examination administered through the Financial Industry Regulatory Authority (FINRA). Upon passing the exam, a character is called a 'forex AP' or 'forex Associated Person.'

According to the NFA, acquiring Series 34 certification is needed for anybody trying to find approval as a forex firm or foreign exchange person earlier than wearing out off-change retail foreign exchange till they've already surpassed the Series 3 (National Commodities Futures Examination) or the Series 32 (Limited Futures Examination-Regulations) exams. They moreover have to have handed the Series 34 inside the previous years or have been constantly registered with an NFA member enterprise after passing the Series 34 without a registration lag of greater than years.

Series 34 Exam Content
The Series 34 Exam includes 40 more than one-choice questions. Candidates have 60 minutes to finish it. To pass the examination, the applicant has to get a minimum of 28 questions correct to gain a passing rating of 70%.
The following represents a pattern listing of main hassle regions included through the Series 34 Exam, although it isn't exhaustive (For more, see the NFA's Retail Off-Exchange the Forex market Examination Content Outline):

Section 1: Definitions and Terminology - American/European Terms; Base, quote, phrases, and secondary foreign currency; Bid/ask unfold; Collateral, Regulated entities indexed in the Commodity Exchange Act; safety deposit, margin; Cross charges, crosses and pairs; Direct and oblique prices; Exchange rate; Forward Points; Forward price/bid forward fee; Interest rate differential and parity; Mark-up and mark-downs; PIPs; Rollovers; Spot charge/price; Trade/Settlement date; Swaps.

Section 2: the Forex market Trading Calculations - Cross rate transactions; Effects of leverage calculations; Netting of positions; Open trade variant; Profit & loss calculations; Pip charge, fee after pips; Return on collateral. Safety deposit, margin, and Transaction prices.

Section 3: Risks Associated with Forex Trading - Country/sovereign risk; Credit, exchange price; interest fee, liquidity, market, operational threat; Settlement, and Herstaat risk.

Section 4: The Forex Market - Concepts, Theories, Economic Factors, and Indicators, Participants: Balance of payments; Balance of trade; Bank for International Settlements (BIS); Capital account and modern-day account; Central economic institution sports, intervention, sterilized intervention; Clearing House Interbank Payment System (CHIPS); Discount fee; Economic signs: employment, purchaser spending, income, business, and inflation signs; Elasticity of trade expenses; Exchange price intervention; Exchange fee volatility; Federal Reserve Board, Fedwire; Fiscal insurance; Fisher effect; Foreign investment signs; Gross national product, gross domestic product; Inflation; Interbank budget switch and settlement systems; International Fisher impact; International Monetary Fund; Portfolio stability; Role of significant banks; Theory of elasticities; Theory of buying electricity parity and the World Trade Organization.

Section 5: the Forex market Regulatory Requirements - CFTC Regulations, which incorporates Close out of offsetting positions, Disclosure of worthwhile vs. Non-profitable payments, Prohibition of ensures towards loss, Registration necessities, Re-quoting, Security deposits, Specific authorization for trades; CFTC jurisdiction and jurisdictional barriers; Conflicts of hobby; Disclosures to customers; Jurisdictional & regulatory framework; Know your purchaser; NFA Interpretive Notices, in conjunction with The Allocation of Bunched Retail the Forex market Orders for Multiple Accounts, the Forex market Transactions, Requirements for the Forex market Transactions, Supervision of the Use of Electronic Trading Systems, Prohibition at the Use of Certain Electronic Funding Mechanisms (Effective January 31, 2015); NFA club and accomplice membership necessities; Promotional cloth & solicitation; Reports to clients, confirmations, monthly summaries; Security deposit guidelines; Security of patron rate range, no segregation.