I can't disagree with that, but the test is pretty stupid and it does not go into anything related to how your PM Haircut will be calculated vs. reg-T which is the most important part. Daytrader1540 is set now, but I am really worried about you RichardRimes. This test is not hard, I give you that 12 is a little strange but there is only one logical answer which has already been posted on another thread, and #16 is poorly worded but there in only one "close enough" answer. The rest should not be hard if you think about them. Let's stop discussing this in public. Anyone who needs help send me a PM with your explanation for and confusion about certain questions. Or just call them.
# 16 is no problem...why not discuss this in public? I was a HS school teacher and found public discussion the best way to learn for many people.... And your right it isn't a hard test but a couple of the questions are poorly worded and need clarification which I will get from TOS.
I think we are all square anyway, but I am interested in what they say when WeeWilly calls them. Please let us know.
My 2 cents - I doubt ToS will care how the answers to these questions are obtained. It's just a formality on their end. I'm actually glad to see that the ET community is helping one another. The concern should be focused on the user of PM and whether they have a solid understanding of options. Some of those questions do require cracking open a textbook, and depending on your overall strategy, is irrelevant to how PM will affect you. However, if you cannot calculate something as basic as the P&L of a position or what to do on a liquidiation call, PM may spell disaster. Leverage is a two way street. OP
If you've been trading options for 25 yrs I don't see how you would have any trouble with this test. I found it pretty easy and I haven't traded for 25 yrs. The test isn't a formality, it's a requirement specific to TOS. If you don't like the test, open an account at IB. They don't require any tests. I suggest you guys stop giving out answers. If I were TOS and found this thread, I would void everyone's test and make them take a new one. Those of you who already passed, you are screwing yourselves. Why do you care if someone can't qualify for PM at TOS? That's their problem and TOS's problem.
Why are people flipping out about discussing the TOS "test"? It's essentially options 101. TOS wants people to know these basics. Discussing them is good for their business because more people will be educated, and thus be willing to trade more. With this sort of test they are only trying to screen out those who don't have at least a mild-moderate amount of knowledge about options and margin.
Lets face it guys TOS is only worried about one thing and that is making commissions off of us..I learned that a long time ago..and essentially they do not produce any guidelines or rules to take this test so it is an open book test where you can receive help anywhere..if it wasn't they would have you take it online with time limits and more controls..Wee Willie Winkie needs to lighten up a little