Introduction to Trading, Clearing, Settlement & Risk Management
25 questions. Each answer is explained.
Question 1 of 10Practice · Series XIII — Common Derivatives
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Learn these topics
More units in NISM Series XIII
- Basics of Derivatives (Equity, Currency and Interest Rate)6
- Introduction to the Underlying Markets24
- Introduction to Forwards and Futures20
- Strategies Using Futures24
- Introduction to Options – Options on Equities and Currencies22
- Option Trading Strategies – Strategies using Equity Options and Currency options4
- Legal and Regulatory Environment14
- Accounting and Taxation of Derivatives6
- Sales Practices, Code of Conduct and Investor Protection Measures5
Exam format
| Questions | 150 · 1 mark each |
|---|---|
| Duration | 180 min · 3 hours |
| Pass mark | 60% · 90 of 150 marks |
| Negative marking | 25% · 0.25 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series XIII Common Derivatives
Exam rules read on NISM's site on 17 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 17 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 25 questions on Introduction to Trading, Clearing, Settlement & Risk Management, with answers
Q1Which order type prioritizes execution rather than a specified maximum buy or minimum sell price?
Option A. Limit order
Why it is wrong: A limit order imposes a price boundary.
Option B. Stop-limit order
Why it is wrong: A stop-limit order imposes a trigger and price constraint.
Option C. Good-till-date limit order
Why it is wrong: A dated limit order still controls execution price.
Option D. Market order — Correct answer
Answer: D. A market order seeks immediate execution at available market prices, subject to market liquidity. Remember: Market orders prioritize execution over exact price.
Hint, shown before you answer in practice mode: Common mistake: Immediate execution does not guarantee a favorable price. Compare speed against price control.
XIII-101easyconceptual
Q2What does a limit buy order primarily control?
Option A. The exact moment a seller must enter the market
Why it is wrong: Counterparty entry time is not under the buyer's control.
Option B. The guaranteed time needed to complete the order
Why it is wrong: A limit order might remain unfilled.
Option C. The contract's final settlement date
Why it is wrong: Expiry or settlement date is defined by the contract.
Option D. The highest purchase price the trader is willing to pay — Correct answer
Answer: D. A buy limit order specifies the maximum acceptable execution price. Remember: A limit order provides price control.
Hint, shown before you answer in practice mode: Common mistake: A limit price cannot guarantee execution. Think about the buyer's price ceiling.
XIII-102easyconceptual
Q3What is a central clearing corporation's main role in exchange-traded derivatives?
Option A. Manage cleared trade obligations and settlement risk — Correct answer
Option B. Set every underlying share's fundamental value
Why it is wrong: The clearing corporation does not set intrinsic share value.
Option C. Guarantee every trader a positive investment return
Why it is wrong: Central clearing cannot guarantee trading profit.
Option D. Decide each customer's preferred trading strategy
Why it is wrong: Strategy choice remains with market participants.
Answer: A. A clearing corporation manages clearing and settlement obligations and associated counterparty risk. Remember: Central clearing supports performance of trades.
Hint, shown before you answer in practice mode: Common mistake: Clearing protects settlement processes, not against market direction. Consider what happens after trades are matched.
XIII-103easyconceptual
Q4In exchange-traded futures, what is the main function of the initial margin requirement?
Option A. A guaranteed return paid to every futures buyer
Why it is wrong: Collateral does not pay a guaranteed return.
Option B. The full market value always paid to purchase the underlying
Why it is wrong: Futures commonly use margin rather than full underlying payment.
Option C. A statutory tax paid only when the futures expires
Why it is wrong: Margin is not the same as an expiry tax.
Option D. Collateral collected to cover potential exposure before settlement — Correct answer
Answer: D. Initial margin is collateral required to help cover potential losses on an open futures position. Remember: Initial margin supports risk management.
Hint, shown before you answer in practice mode: Common mistake: Margin is not a fee or guaranteed maximum loss. Think about collateral rather than option premium.
XIII-104easyconceptual
Q5What does open interest measure in a futures market?
Option A. The number of trades executed over the entire day
Why it is wrong: Trading volume counts activity and differs from open interest.
Option B. The number of shares issued by the underlying company
Why it is wrong: Issued shares are an underlying-market measure.
Option C. The rupee profit reported by the clearing member
Why it is wrong: Profit is unrelated to the definition of open interest.
Option D. The number of outstanding contracts that remain open — Correct answer
Answer: D. Open interest counts contracts that remain open rather than the day's total traded contracts. Remember: Open interest measures outstanding derivatives contracts.
Hint, shown before you answer in practice mode: Common mistake: High trading volume need not raise open interest. Think about positions still outstanding.
XIII-105easyconceptual
Q6What does daily mark-to-market settlement recognize on an open futures position?
Option A. Only the transaction taxes paid at contract expiry
Why it is wrong: Taxes are distinct from the mark-to-market amount.
Option B. Daily gains and losses from settlement-price movements — Correct answer
Option C. Only the interest earned on initial collateral
Why it is wrong: Collateral interest is separate from market P&L.
Option D. Permanent ownership of the underlying security
Why it is wrong: Holding futures does not automatically create equity ownership.
Answer: B. Daily mark-to-market recognizes the position's gains or losses using the relevant daily settlement price. Remember: Futures gains and losses can be settled daily.
Hint, shown before you answer in practice mode: Common mistake: Do not wait until expiry to recognize every futures movement. Focus on daily changes in futures value.
XIII-106easyconceptual
Q7What is the main purpose of a stop-loss order instruction?
Option A. Guarantee that the exit price is exactly the trigger price
Why it is wrong: A stop order can execute at a different price.
Option B. Trigger an action after a specified adverse price condition — Correct answer
Option C. Remove all market liquidity risk
Why it is wrong: Stop orders do not remove liquidity risk.
Option D. Promise that the underlying cannot trade lower
Why it is wrong: A stop cannot stop the market price itself.
Answer: B. A stop-loss instruction activates an order when its trigger condition is met under exchange and order-type rules. Remember: Stop conditions guide order activation.
Hint, shown before you answer in practice mode: Common mistake: A trigger price is not always the fill price. Consider a trigger versus a final execution price.
XIII-107easyconceptual
Q8Which item is normally defined in the published specification of an exchange-traded futures contract?
Option A. Every participant's final trading profit
Why it is wrong: Contract terms do not promise a participant's profit.
Option B. Every trader's personal tax liability
Why it is wrong: Personal taxes depend on circumstances outside the contract.
Option C. The future closing price of the underlying
Why it is wrong: Future market prices are unknown.
Option D. Underlying, contract quantity and expiry — Correct answer
Answer: D. The contract specification identifies standardized terms such as underlying, quantity and expiry. Remember: Published contract specifications make products comparable.
Hint, shown before you answer in practice mode: Common mistake: A contract's standardized terms are not predictions. Think about standard contract details.
XIII-108easyconceptual
Q9A trader enters a buy limit order at ₹100 when the best sell offer is ₹99. Which execution is consistent with the limit?
Option A. Buying at ₹99 — Correct answer
Option B. Buying at ₹101
Why it is wrong: ₹101 exceeds the stated buy ceiling.
Option C. Buying only at ₹105
Why it is wrong: ₹105 also exceeds the buy ceiling.
Option D. Selling at ₹100 instead
Why it is wrong: The instruction is to buy, not sell.
Answer: A. A buy limit of ₹100 permits execution at ₹99 or another available price no higher than ₹100. Remember: A buy limit can receive price improvement.
Hint, shown before you answer in practice mode: Common mistake: The limit is a ceiling, not an exact required fill. Apply the buyer's maximum price rule.
XIII-109mediumapplication
Q10What is a key feature of an immediate-or-cancel order?
Option A. The order remains active until next year
Why it is wrong: Remaining quantity is not carried indefinitely.
Option B. The exchange guarantees the entire quantity is filled
Why it is wrong: The full requested quantity may not be available.
Option C. The order can only be placed at expiry
Why it is wrong: IOC is an order condition rather than expiry-only instruction.
Option D. Any unfilled quantity is cancelled after immediate matching — Correct answer
Answer: D. An immediate-or-cancel order executes any immediately available portion and cancels the remainder. Remember: IOC prevents resting unmatched quantity.
Hint, shown before you answer in practice mode: Common mistake: Partial execution is possible unless a separate fill condition applies. Think about what happens to unmatched quantity.
XIII-110mediumconceptual
Q11When two buy limit orders have equal prices, what commonly determines matching priority in a price-time order book?
Option A. The buyer's age
Why it is wrong: Trader age is not the matching criterion.
Option B. The number of previous profitable trades
Why it is wrong: Trading profitability does not set time priority.
Option C. The holder's long-term investment horizon
Why it is wrong: Investment horizon is not a matching parameter.
Option D. Earlier entry time — Correct answer
Answer: D. A price-time priority order book generally favors the order entered earlier among orders with the same price. Remember: Time priority helps decide between equal-price orders.
Hint, shown before you answer in practice mode: Common mistake: Higher price priority and earlier time are different levels of matching. Think of ordering equally priced instructions.
XIII-111mediumconceptual
Q12A long futures position covers 100 units. Yesterday's settlement was ₹102 and today's is ₹98. What is today's mark-to-market result?
Option A. ₹400
Why it is wrong: ₹400 has the wrong sign for a falling price.
Option B. −₹400 — Correct answer
Option C. −₹4
Why it is wrong: −₹4 ignores the contract quantity.
Option D. ₹10,200
Why it is wrong: ₹10,200 is yesterday's notional value.
Answer: B. Daily MTM = (98 − 102) × 100 = −₹400. Remember: Daily MTM uses settlement-price change times quantity.
Hint, shown before you answer in practice mode: Common mistake: A loss is debited to a long position when price falls. Compare successive settlement prices for a long.
XIII-112mediumnumerical
Q13When a new futures buyer trades with a new futures seller, what normally happens to open interest?
Option A. It increases by one contract — Correct answer
Option B. It decreases by two contracts
Why it is wrong: Two new openings do not reduce outstanding contracts.
Option C. It stays unchanged in every case
Why it is wrong: Open interest can increase when both sides open.
Option D. It becomes equal to twice the trade volume
Why it is wrong: One contract contributes once, not once per side.
Answer: A. One newly opened long matched with one newly opened short creates one additional outstanding contract. Remember: Open interest counts contracts, not both counterparties separately.
Hint, shown before you answer in practice mode: Common mistake: Never double count the long and short sides of one contract. Consider whether both sides create outstanding positions.
XIII-113mediumconceptual
Q14When two traders close matching existing futures positions, what generally happens to open interest?
Option A. It increases by two contracts
Why it is wrong: Closing both sides does not add new open interest.
Option B. It decreases by one contract — Correct answer
Option C. It remains fixed regardless of closure
Why it is wrong: Matched closures can reduce open interest.
Option D. It becomes the exchange's daily turnover
Why it is wrong: Turnover and outstanding exposure are different.
Answer: B. A closing long paired with a closing short typically removes one outstanding contract. Remember: Open interest falls when an outstanding contract is closed on both sides.
Hint, shown before you answer in practice mode: Common mistake: Trading volume can rise while open interest falls. Think about eliminating an outstanding matched obligation.
XIII-114mediumconceptual
Q15What is the main purpose of maintaining separate client margin records in clearing operations?
Option A. Make every customer eligible for unlimited borrowing
Why it is wrong: Margin records do not create an unlimited credit entitlement.
Option B. Identify client collateral and obligations distinctly — Correct answer
Option C. Combine all customer assets into trading profit
Why it is wrong: Collateral remains separate from realized trading profits.
Option D. Avoid recording risk on individual customer positions
Why it is wrong: Individual risk still needs to be monitored.
Answer: B. Client-level margin records support attribution and monitoring of each customer's positions and collateral. Remember: Clear margin records support client risk controls.
Hint, shown before you answer in practice mode: Common mistake: Do not treat client collateral as a member's profit. Think about tracing the source and use of collateral.
XIII-115mediumconceptual
Q16A futures account has ₹25,000 collateral. A ₹4,000 MTM loss is debited. What collateral balance remains before other changes?
Option A. ₹21,000 — Correct answer
Option B. ₹29,000
Why it is wrong: ₹29,000 incorrectly adds the loss.
Option C. ₹4,000
Why it is wrong: ₹4,000 is the loss amount, not residual balance.
Option D. ₹25,400
Why it is wrong: ₹25,400 misstates the debit.
Answer: A. Remaining balance = ₹25,000 − ₹4,000 = ₹21,000. Remember: Futures MTM losses reduce collateral balance.
Hint, shown before you answer in practice mode: Common mistake: Collateral and MTM are separate quantities until netted. Deduct the trading loss from available collateral.
XIII-116mediumnumerical
Q17What is the main principle behind scenario-based SPAN margin assessment?
Option A. Set option premiums equal for every strike
Why it is wrong: Option premiums need not be equal across strikes.
Option B. Estimate potential portfolio loss across defined risk scenarios — Correct answer
Option C. Fix every future's settlement price in advance
Why it is wrong: Future settlement prices remain market-dependent.
Option D. Eliminate every possibility of a clearing member ever defaulting
Why it is wrong: Risk models reduce but do not eliminate default possibility.
Answer: B. Scenario-based margining estimates portfolio risk across prescribed changes in market variables. Remember: Margin reflects potential stress losses.
Hint, shown before you answer in practice mode: Common mistake: A margin model is not an investment guarantee. Think about potential adverse market moves.
XIII-117mediumconceptual
Q18Why are derivative contract terms sometimes adjusted after a stock split?
Option A. To increase every holder's profit automatically
Why it is wrong: Adjustments do not manufacture guaranteed profits.
Option B. To make all outstanding options expire immediately
Why it is wrong: A split need not force immediate option expiry.
Option C. To ensure the underlying share cannot fall afterward
Why it is wrong: Underlying prices can still move after the event.
Option D. To keep the holder's economic exposure broadly the same — Correct answer
Answer: D. Corporate-action adjustments may modify strike and contract quantity to preserve economic equivalence. Remember: Corporate-action adjustments target economic continuity.
Hint, shown before you answer in practice mode: Common mistake: Do not treat a stock split as free option profit. Think about maintaining pre-action contract economics.
XIII-118mediumconceptual
Q19What distinguishes cash settlement from physical settlement of a derivative?
Option A. Cash settlement requires delivering every underlying security
Why it is wrong: Delivering the underlying describes physical settlement.
Option B. Physical settlement never uses any payment
Why it is wrong: Physical delivery can involve payment obligations.
Option C. Cash settlement pays the difference instead of delivering the asset — Correct answer
Option D. Physical settlement and cash settlement are identical
Why it is wrong: The two settlement methods have different obligations.
Answer: C. Cash settlement generally transfers the cash difference, while physical settlement involves delivery of the specified underlying against payment as applicable. Remember: Check a contract's settlement method before trading.
Hint, shown before you answer in practice mode: Common mistake: Do not assume all derivative contracts settle identically. Focus on what is exchanged at settlement.
XIII-119mediumconceptual
Q20Why do exchanges monitor unusual concentration of derivatives positions?
Option A. To guarantee every concentrated trade is profitable
Why it is wrong: Surveillance cannot promise profits.
Option B. To identify potential market-integrity and risk concerns — Correct answer
Option C. To abolish all requirements for member margins
Why it is wrong: Margins may still be required.
Option D. To eliminate movements in underlying prices
Why it is wrong: Market surveillance does not freeze prices.
Answer: B. Position surveillance helps exchanges identify concentration, manipulation concerns and excessive exposures. Remember: Position monitoring supports orderly markets.
Hint, shown before you answer in practice mode: Common mistake: Large positions are not automatically illegal or profitable. Consider the purpose of market surveillance.
XIII-120mediumconceptual
Q21A long futures position covers 100 units. Daily settlements move from ₹101 to ₹95, then ₹105. What is cumulative MTM after two days?
Option A. −₹600
Why it is wrong: −₹600 includes only the first day.
Option B. ₹1,000
Why it is wrong: ₹1,000 includes only the second day.
Option C. ₹1,600
Why it is wrong: ₹1,600 adds absolute changes instead of signed P&L.
Option D. ₹400 — Correct answer
Answer: D. Day 1 = (95 − 101) × 100 = −₹600. Day 2 = (105 − 95) × 100 = ₹1,000. Cumulative MTM = ₹400. Remember: Cumulative futures P&L sums signed daily MTM.
Hint, shown before you answer in practice mode: Common mistake: Do not add losses and profits without their signs. Add both days' signed settlement changes.
XIII-121hardnumerical
Q22One client holds 12 long and 5 short contracts of the same fungible expiry and underlying. What is the net open position?
Option A. 17 contracts long
Why it is wrong: 17 is the gross contract count, not net.
Option B. 7 contracts long — Correct answer
Option C. 7 contracts short
Why it is wrong: A positive balance indicates long rather than short.
Option D. 60 contracts long
Why it is wrong: 60 multiplies positions instead of netting them.
Answer: B. Net position = 12 longs − 5 shorts = 7 contracts long. Remember: Net exposure differs from gross traded positions.
Hint, shown before you answer in practice mode: Common mistake: Do not add opposing positions when asked for net risk. Net contracts of the same specification.
XIII-122hardnumerical
Q23A collateral account starts with ₹20,000. It loses ₹8,000 and requires ₹15,000 to meet its stated minimum. How much additional collateral is needed?
Option A. ₹8,000
Why it is wrong: ₹8,000 is the MTM loss, not the top-up.
Option B. ₹5,000
Why it is wrong: ₹5,000 is the starting excess over the minimum.
Option C. ₹15,000
Why it is wrong: ₹15,000 ignores remaining collateral.
Option D. ₹3,000 — Correct answer
Answer: D. Remaining collateral = 20,000 − 8,000 = ₹12,000. Shortfall = 15,000 − 12,000 = ₹3,000. Remember: Margin calls address a shortfall against a requirement.
Hint, shown before you answer in practice mode: Common mistake: Do not equate the full trading loss with required top-up. Compare remaining collateral with the stated requirement.
XIII-123hardnumerical
Q24Assume a 2-for-1 stock split with a value-neutral option adjustment. A ₹100 strike contract covers 100 shares. What are the adjusted strike and quantity?
Option A. ₹200 and 50 shares
Why it is wrong: ₹200 and 50 shares reverses the split adjustment.
Option B. ₹50 and 200 shares — Correct answer
Option C. ₹100 and 200 shares
Why it is wrong: ₹100 and 200 shares doubles total exercise consideration.
Option D. ₹50 and 100 shares
Why it is wrong: ₹50 and 100 shares halves total exercise consideration.
Answer: B. With this assumed adjustment, strike halves to ₹50 and contract quantity doubles to 200 shares, retaining ₹10,000 exercise consideration. Remember: Corporate-action adjustment can change both strike and quantity.
Hint, shown before you answer in practice mode: Common mistake: Check adjustment methodology instead of changing only the strike. Preserve total strike exposure through the split.
XIII-124hardnumerical
Q25A market buy order fills 60 units at ₹100 and 40 units at ₹102. What is the average execution price per unit?
Option A. ₹101.00
Why it is wrong: ₹101.00 is an unweighted average of the two price levels.
Option B. ₹102.00
Why it is wrong: ₹102.00 uses only the higher fill price.
Option C. ₹100.20
Why it is wrong: ₹100.20 understates the weighted slippage.
Option D. ₹100.80 — Correct answer
Answer: D. Total cost = 60 × 100 + 40 × 102 = ₹10,080. Average = 10,080 ÷ 100 = ₹100.80. Remember: Multi-level orders require quantity-weighted average price.
Hint, shown before you answer in practice mode: Common mistake: Do not use an unweighted average when quantities differ. Weight each execution price by its filled quantity.
XIII-125hardnumerical
Introduction to Trading, Clearing, Settlement & Risk Management: common questions
How many practice questions are there on Introduction to Trading, Clearing, Settlement & Risk Management?
25 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 10 practice topics for NISM Series XIII, which has 150 questions in total.
Are these real NISM Series XIII questions on Introduction to Trading, Clearing, Settlement & Risk Management?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series XIII?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1-mark question that is 0.25 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Legal and Regulatory Environment
14 questions on Legal and Regulatory Environment. Its quiz opens on that unit.
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