NISM Series VIII study plan

Map the full NISM Series VIII syllabus against your current knowledge and mark every sub-topic as strong, weak, or unknown

Define the four derivative contract types (forwards, futures, options, swaps) and write one original example of each from an Indian market context

Explain the difference between exchange-traded and over-the-counter derivatives, listing at least three distinguishing features for each

Describe the roles of hedgers, speculators, and arbitrageurs and give one concrete scenario per role

Trace the mechanics of a futures trade from order placement through clearing, margin, and settlement

Distinguish initial margin, maintenance margin, and mark-to-market, and compute a margin call scenario by hand

Explain the daily settlement process and how MTM profits and losses are credited or debited

Identify the contract specifications that matter most (lot size, tick size, expiry, settlement type) and note how index futures differ from single-stock futures

Define forward price, futures price, spot price, cost of carry, and convenience yield, and state how each enters the pricing relationship

Derive the cost-of-carry relationship for a non-dividend-paying asset and adapt it for dividends and storage costs

Compute the fair value of an index futures contract given spot level, risk-free rate, dividend yield, and days to expiry

Explain what contango and backwardation are and why a market may trade in either state

Identify at least three reasons why actual futures prices can deviate from theoretical fair value

Describe the payoff profile of a long and short position in a futures contract and sketch both from memory

Explain how basis behaves over the life of a contract and why it converges to zero at expiry

Identify the main risks of futures trading: leverage risk, liquidity risk, basis risk, and counterparty/clearing risk

Distinguish hedging with futures from hedging with forwards and state when each is appropriate

Define call and put options and state the rights and obligations of buyer and writer for each

Distinguish moneyness states (ITM, ATM, OTM) for calls and puts and classify ten given strike/spot combinations correctly

Draw payoff and profit diagrams at expiry for long call, short call, long put, and short put, marking breakeven and maximum loss

Explain intrinsic value versus time value and identify which option components drive each

Define the option premium and list the factors that influence it

Explain put-call parity and verify it numerically with a worked example using the same strike and expiry

Describe the direction of impact of spot price, strike, volatility, time to expiry, interest rate, and dividends on call and put values

Explain delta, gamma, theta, vega, and rho qualitatively and state the sign of each for a long call and a long put

Compute the payoff of simple option strategies at expiry: covered call, protective put, bull call spread, and straddle

Identify arbitrage opportunities when an option is mispriced relative to parity

Explain the trading, clearing, and settlement architecture for exchange-traded derivatives, including the role of the clearing corporation

Describe margining for options positions, including premium margin and assignment margin concepts

Summarise the regulatory framework governing equity derivatives, covering the roles of SEBI and the exchanges

Explain investor protection measures, dispute resolution, and the code of conduct expected of a registered intermediary

Identify record-keeping and know-your-client obligations relevant to a derivatives dealer

Complete two full-length timed mock tests under exam conditions and record scores by sub-topic

Analyse every incorrect answer and classify each error as knowledge gap, calculation slip, or misread question

Re-drill the three weakest sub-topics identified by mock performance until accuracy exceeds 80 percent

Recite the key formulas (cost of carry, fair value, put-call parity, payoff at expiry) from memory under time pressure

Review the code of conduct and regulatory points one final time before the exam