NISM Series I (Currency Derivatives) study guide
NISM Series I (Currency Derivatives) · Work through your exam, one topic at a time.
The NISM-Series-I: Currency Derivatives Certification Examination is one of the certification examinations offered by the National Institute of Securities Markets (NISM), the public trust established in 2006 by the Securities and Exchange Board of India (SEBI). NISM lists it under the Derivatives group of its certification examinations, alongside the Commodity Derivatives, Equity Derivatives, Interest Rate Derivatives and Common Derivatives examinations, and it also maintains a dedicated Currency Derivatives CPE/eCPE programme for continuing education. The credential is aimed at candidates who work with, or intend to work with, currency futures and options on Indian exchanges - dealer and sales staff at trading members, back-office and risk personnel, and candidates who need a derivatives certification for a role or for their own knowledge. Because NISM publishes the syllabus and study material for this examination, preparation should start from the official NISM workbook for the series and its workbook-based practice questions, then move to exchange-sourced material on contract specifications, margining and settlement. Note that the specific question count, duration, passing score, fee, retake policy and validity period are not stated in the source material available here, so candidates should confirm those details on the current NISM examination page before booking. This page is independent study material and is not affiliated with or endorsed by NISM or SEBI. Topics on this exam: Currency Derivatives. The NISM Series I (Currency Derivatives) study guide has 1 section and about 431 words.
01Currency Derivatives
NISM Series I tests the mechanics of exchange-traded currency derivatives in India: quoting conventions, forward and futures pricing, hedging, speculation, arbitrage, margining, settlement and the regulatory split between RBI and SEBI. Expect calculation questions on cross rates, forward premia and futures profit and loss. In a quote such as USD/INR 83.50/83.52, USD is the base currency and INR the quote currency. The bid is where the dealer buys the base; the ask is where it sells it.
431 words, about 2 minMore study resources for NISM Series I (Currency Derivatives)
- Practice questionsOn the NISM currency derivatives framework, which underlying is traded when a client takes a position in the USD/INR futures contract on an Indian exchange?
- FlashcardsCurrency futures contract. A standardized exchange-traded agreement to buy or sell a fixed amount of a foreign currency at a price agreed today, with daily mark-to-market settlement and expiry on a specified date.
- Cheat sheetContract specification on Indian exchanges: USD/INR, EUR/INR, GBP/INR and JPY/INR futures are quoted as INR per unit of foreign currency; JPY/INR is quoted per 100 yen, so a quote of 62.50 means INR 62.50 per 100 JPY.
- Key termsCurrency derivative. A contract whose value depends on the exchange rate between two currencies.
- Study planMap the NISM Series I syllabus into a one-page checklist covering the currency derivatives topic areas: forex market structure, forward and futures contracts, options, exchange-traded versus OTC products, clearing and settlement, margining, taxation, and regulatory framework.
- Common mistakesCandidates study forwards and futures together as 'currency derivatives' and memorise a single blended list of features, so they lose track of which features belong to which market.
- Exam-day guideNISM certification tests are administered through NISM's designated test administrators.