Currency Derivatives Certification

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NISM Series I: Currency Derivatives Mock Test


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Examination Overview - NISM Series I: Currency Derivatives Certification


The examination aims to establish a standardized baseline of minimum knowledge for individuals operating within the currency derivative segment. The goal is to enhance comprehension of currency markets and exchange-traded currency derivative products, ultimately leading to improved quality in investor service, operational process efficiency, and strengthened risk controls.


Upon successful completion of the examination, candidates should:

  • Acquire a foundational understanding of currency markets, with a specific focus on Exchange Traded Currency Derivatives markets.
  • Comprehend the trading, clearing, and settlement mechanisms associated with Exchange Traded Currency Derivatives markets. Additionally, gain knowledge of basic investment strategies utilizing currency futures and options products.
  • Demonstrate knowledge of the regulatory environment governing exchange-traded currency Derivatives markets in India.
  • For more details, please visit the official website of NISM.


Assessment Structure


Exam Component Details
Total Marks 100
Number of Questions 100 (1 mark each)
Exam Duration 2 hours
Negative Marking 25% per incorrect answer
Passing Score 60%

This NISM Currency Derivatives Certification is also available in Hindi and Gujarati languages.


Other details
  • Passing Certificate will be issued only to those candidates who have furnished/updated their Income Tax Permanent Account Number (PAN) in their registration details.


    Syllabus Outline for Currency Derivatives


    Unit 1: Introduction to Currency Markets


    • 1.1 Know the brief history of foreign exchange markets
    • 1.2 List major currency pairs
    • 1.3 Understand the basics of currency markets and peculiarities in India
    • 1.4 Calculate cross rates (exchange rate arithmetic)
    • 1.5 Discuss the impact of economic factors on currency prices
    • 1.6 Describe key economic indicators and their impact on currency market

    Unit 2: Foreign Exchange Derivatives


    • 2.1 Define the term Derivatives as per the SC(R)A
    • 2.2 Understand the key economic functions of derivatives
    • 2.3 Recognize various derivative products: forwards, futures, options, swaps
    • 2.4 Know the factors driving the growth of financial derivatives
    • 2.5 List various market players in the Currency Derivatives market
    • 2.6 Compare exchange-traded and over-the-counter derivatives
    • 2.7 Know the rationale for introducing exchange-traded currency derivatives in India

    Unit 3: Exchange Traded Currency Futures


    • 3.1 Define currency futures and understand related terms
    • 3.2 Draw pay-off diagram of futures
    • 3.3 Know the contract specification for Exchange Traded Currency Futures
    • 3.4 Understand tick size and contract value changes
    • 3.5 Compare futures and forwards
    • 3.6 Understand interest rate parity and pricing of currency futures

    Unit 4: Exchange Traded Currency Options


    • 4.1 Define options and related terms
    • 4.2 Compare futures and options: rights & obligations
    • 4.3 Differentiate European and American options
    • 4.4 Understand option moneyness: ITM, ATM, OTM
    • 4.5 List determinants of option price and understand Greeks
    • 4.6 Outline common models for option pricing
    • 4.7 Understand implied volatility
    • 4.8 Draw payoff diagrams of puts and calls
    • 4.9 Know contract specs for currency options
    • 4.10 Exchange traded vs OTC options: advantages and limitations

    Unit 5: Strategies Using Exchange Traded Currency Derivatives


    • 5.1 Understand roles of hedgers, speculators, and arbitrageurs
    • 5.2 Learn option trading strategies and payoffs
    • 5.3 Use currency derivatives to hedge FX exposures
    • 5.4 Use derivatives for speculative purposes
    • 5.5 Explore arbitrage opportunities
    • 5.6 Understand spreads and spread trading
    • 5.7 Know limitations for hedgers using derivatives

    Unit 6: Trading Mechanism


    • 6.1 List entities in the trading system and their roles
    • 6.2 Understand Exchange segment, system, order process
    • 6.3 Learn types of orders and their conditions
    • 6.4 Know risk management and order routing
    • 6.5 Understand price limit circuit filters
    • 6.6 Trading costs: brokerage, exchange fees, SEBI fees, GST

    Unit 7: Clearing, Settlement & Risk Management


    • 7.1 Overview of clearing and settlement
    • 7.2 Know entities involved and their roles
    • 7.3 Understand interoperability among clearing corps
    • 7.4 Learn the clearing mechanism
    • 7.5 Determine settlement obligation
    • 7.6 Know open position limit guidelines
    • 7.7 Understand daily and final settlement pricing
    • 7.8 Understand fund settlement
    • 7.9 Learn about exchange risk management
    • 7.10 Know margin collection procedures
    • 7.11 Understand Core Settlement Guarantee Fund

    Unit 8: Regulatory Framework


    • 8.1 Understand SC(R)A and its definitions
    • 8.2 Know RBI-SEBI committee role
    • 8.3 Learn about FEMA provisions
    • 8.4 Understand SEBI regulations for currency exchanges
    • 8.5 Know RBI participation guidelines
    • 8.6 Participation rules for different entities
    • 8.7 Membership eligibility criteria

    Unit 9: Accounting and Taxation


    • 9.1 Accounting and disclosure for currency derivatives
    • 9.2 Taxation of currency derivatives contracts

    Unit 10: Codes of Conduct and Investor Protection


    • 10.1 SEBI code of conduct for brokers
    • 10.2 Investor grievance redressal
    • 10.3 Importance of Investor Protection Fund
    • 10.4 Arbitration mechanism
    • 10.5 Risk disclosure and KYC importance

    What We offer?



  • 1. 800 Exam-Focused Questions: Gain confidence with a vast question bank covering all key topics.
    2. Engaging Video Lectures: Learn complex concepts effortlessly with expert-led sessions.
    3. Concise Short Notes: Quick revision aids to help you recall key concepts easily.
  • Quick revision materials designed for clarity and retention.
    4. 15-Days Access: Ample time to prepare and refine your understanding.
    5. 15 Test Attempts per Set: Practice extensively and track your progress.
    6. Affordable Pricing: Just Rs.599 (including GST) for comprehensive study resources.



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