how do you trade commodities like cotton or copper?

You need to register with the NFA and get your series 3 license. Then a company will have to hire you to work for them.

You are trading futures, basically anything but stocks. Gold, Cotton, Currency etc.

I cant remember how many questions there are but I think you have 3 hours to take the test. Plan on at least 40 hours-60 hours of studying. Its 2 tests in one. They mix it all up but 20% of the test is regulations, 80% is that your understanding of the business. Questions will be like this, if you have corn and you want to do a butterfly spread and hedge your corn. What would you go long and and what would be your profit and loss.

It might make no sense now, but you will first have to know what a butterfly spread is so you can pick the right commodity then you will have to do the math to figure out the hedge. There is alot of math in the questions.

First you have to know what the question is about, then you have to figure out the right answer. It is mulitple choice. I passed it my second time because I didnt even know what the different spreads were. So study. Second time it was a breeze. About 12% of the people pass it the first time, so good luck. 25% pass it their second time. I could do all the math I got that 100% right, but I didnt take the time to figure out what spreads affect what.

First time I got a question about a corn feeder. Im sitting there thinking what the hell is a corn feeder and how would that affect the market. I could have done the math but thats where you get to a 25% chance. You would have had to pick that its talking about cows. I was picturing those big silos. So pay attention to those things because you will have to know how they relate to eachother.

If you suck at math you better get good at it really fast.

http://www.nfa.futures.org/