Very accurate post and well said. I recently passed using the CBOE manual, however it was a VERY DIFFICULT exam, and had I not been adequately prepared after going through the manual extensively, I would have failed. I do feel lucky to have passed, as I did have to make some educated quesses on many questions. My sense is the difference between passing and failing will rely on the following: 1. Your prior knowledge of trading (stocks/options). 2. General knowledge of the trading industry and regulations. 3. Ability to use the process of elimination in reading case scenarios to get the correct answer. I don't see how any newbie trader who joins a CBSX prop with limited trading experience is going to pass this test on the first attempt with the current study materials available. There are way too many questions that fall OUTSIDE the scope of a daytrader who simply trades equities at a prop firm. However, the CBOE manual does clearly state that the information contained in the manual is not exhaustive and that material on the exam may not be in the guide. Remember how this first started, the SEC wanted to close the loophole of broker dealers who joined CBSX and did not require traders to have passed any exams. The SEC first wanted to have everyone take the 7, the CBOE disagreed, and they finally came up with this new exam and then extended the deadline twice to allow more time for traders to prepare. To the CBOE's credit, they have included addendums and revised Chapter 4 which you can access through your log in, so at least they are making changes which will assist others in the future. My recommendation is to send a note to either CBOE or PassPerfect if you did not pass, and include any topics that you remember that were not covered in the respective manuals, as they can only make revisions based on feedback they receive from traders. As Jim Cramer often states, you have to do what it takes to "stay in the game", lol!
Skimmed the study book provided by my firm(1 hour), skimmed the practice exam(30 minutes, skipping all options questions). Took the test in 35 minutes, scored 92%. If you've been around this business for ever and ever you have no excuses for taking it cold and not passing. Really.
Just took the test and scored an 82 on my first try. Here are some words of encouragement. If you're relatively smart, put in a decent amount of time studying the CBOE manual and/or passperfect guide and have a fair amount of experience in the securities industry, you will pass. The test is not easy. You can't pass if you just try to memorize what you've read in the study guide. It takes critical thinking skills and your ability to use applied knowledge. Yes, there were questions on Reg SHO, NMS, M, Securities Act of 33 and 34. Know your option spreads. Facilitation orders were on the test for me. Position limits and hedge exemptions. Know about index option expirations (whether they use the opening or closing price). I'm glad they've implemented this test. This will definitely weed out the newbies. It's for their own protection. Anybody with less than one year of trading experience should not join a prop firm. This test will help with that. Good luck with the test.
any of these tests are not relevant to daytrading only a waste of time & money You have to take a test to risk your own money in the market. pure bullshit. anyone who thinks that being licensed will make you a profitable trader is a fool
thats true hitnrun, but there is nothing we can do about it. we just have to suck it up and get through this thing. i am putting in a few hours everyday with pass perfect, reading over material again and again. try nit to think about how much this info is irrelevent and just get through the thing!! hang in there
You answred each question in 20 seconds and scored a 92, why the hell are you prop trading at a cbsx firm? Nasa probably would have been a better choice for you.
if you don't study hard you don't have a prayer to pass the pass rate is low for those that have actually taken the test maybe 50 % of the traders have passed the 56 is the consensus from most prop firms tough test to pass with study guides that are not comprehensive to get you prepared
My test is on friday and I'm not even half way through the book. Not looking good. Don't think i'll make it.
Correct. It's like the PDT rule. How does having 25k+ in your account make you any better of a trader than having 10k? The SEC seems to think money equates with trading intelligence when the exact opposite is true. I havenât taken the 56, and don't need to as I don't trade prop, but from what I understand of the exam it's completely irrelevant to the profession and only serves as a deterrent to enter the business.
Okay, after all my ranting, I managed to pass at the second attempt (67% on the first attempt, 80% on the second). I used the CBOE manual the first time around (two months agao) and found it to be unreadable and inadequate. I then used an in-house manual that was produced over the last few weeks and that made a tremendous difference. From what I can gather, Passperfect questions are a good foundation for getting through this exam. I kept track of the answers I was sure of - a total of 62/105. I had to guess the rest, and a number of guesses were completely blind. A couple of questions on facilitation crosses, and like the first time, questions on what happens subsequent to failure to deliver. There were a lot of questions on illegal trading practices - which I had studied pretty carefully, so that worked out well. I still consider this exam to be tougher than Series 7 (which I got 93% on back in 2004) - I'm just glad it's over. My firm had warned me of losing trading access on October 30 if I didn't pass by October 29, so I cut it pretty close. Good luck to all of you out there.