Sample Questions

NISM-Series-1: Currency Derivatives Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 If you sell a futures contract at 83.00 and the price falls to 82.00, what is your result?

  • A. A profit of 1 Rupee Correct Answer
  • B. You lose your margin
  • C. A loss of 1 Rupee
  • D. No profit or loss
Explanation:
When you go "Short" (sell), you profit if the market price goes down.

Marks: 1

Q2 What is the 'ODR' portal in the Indian securities market?

  • A. A portal for buying international currencies
  • B. A platform for social media discussions about stocks
  • C. An online system for resolving disputes and complaints between investors and brokers Correct Answer
  • D. A news website for day traders
Explanation:
If you have a fight with your broker and they won't fix it, the ODR (Online Dispute Resolution) portal helps you get a fair settlement via the internet.,

Marks: 1

Q3 For a calendar spread position, the extreme loss margin is calculated as:

  • A. one-fifth the MTM
  • B. one-fourth the MTM
  • C. one-third the MTM Correct Answer
  • D. half the MTM
Explanation:
Calendar spreads have lower risk, so they are charged one-third of the mark-to-market value of the far-month contract.

Marks: 1

Q4 A trader expects EURINR to drop from 75 to 70. To maximize profit from this bearish outlook, which strategy is best?

  • A. Sell Call options
  • B. Sell Put options
  • C. Buy Call options
  • D. Buy Put options Correct Answer
Explanation:
While selling a Call is bearish, the profit is limited to the premium received. Buying a Put option allows for much larger profits as the price falls toward 70.

Marks: 1

Q5 What is the requirement for a member to trade using their proprietary 'Pro-Account'?

  • A. Any 2 locations approved by SEBI
  • B. Any 5 locations approved by SEBI
  • C. Specific location approved by SEBI
  • D. Orders must be from a specific Exchange-approved location Correct Answer
Explanation:
Proprietary trading is restricted to specific locations authorized by the Exchange to ensure proper oversight.

Marks: 1

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