NCFM Derivatives Market (Dealers) study guide
NCFM Derivatives Market (Dealers) · Work through your exam, one topic at a time.
The NCFM Derivatives Market (Dealers) module is one of the certification modules listed under NCFM, the certification programme delivered through the NCFM Portal by NAL Academy Limited (formerly known as NSE Academy Limited), an NSE group company. Candidates register through the "Get started for NCFM" process and select the module from the NCFM Certification Modules listing. The NCFM Derivatives Market (Dealers) study guide has 6 sections and about 2,138 words.
01Derivatives Market Basics
This domain tests the language and mechanics of exchange-traded and OTC derivatives, especially the Indian F&O market. Expect questions on payoffs, contract design, participant roles and the difference between rights and obligations.
380 words, about 2 min02Trading
This domain tests how F&O orders are placed, matched and confirmed, and how contract specifications affect execution. Questions often turn on order types, validity, price bands, expiry and member roles.
372 words, about 2 min03Clearing and Settlement
This domain tests the post-trade chain: novation, margining, daily settlement, final settlement and default handling. The focus is on who bears obligations and when cash or securities move.
365 words, about 2 min04Regulatory Framework
This domain tests the legal perimeter around derivatives dealing in India: SEBI’s powers, exchange rules, eligibility of underlyings, registration and conduct obligations. Derivatives are securities under the Securities Contracts (Regulation) Act, 1956; SEBI regulates the market under the SEBI Act, 1992 and its regulations.
338 words, about 2 min05Risk Management
This domain tests how a dealer measures and controls derivatives risk: margining, mark-to-market, position limits, stress testing and default management. Initial margin is a performance deposit.
354 words, about 2 min06Sales Practices and Ethics
This domain tests client-facing conduct: onboarding, suitability, disclosure, order handling, conflicts of interest and fair dealing. Before dealing, obtain KYC, a unique client code, a signed client agreement and the prescribed risk disclosure.
329 words, about 2 min