n NISM Certifications
XXI NISM Series XXI-A
Medium

A trade that is squared-off during the day:

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Is cancelled by the exchange

  2. Does not require delivery of shares

    Correct answer

  3. C

    Is not guaranteed by the exchange

  4. D

    Is not considered in calculating trading volumes

Why this is the answer

A squared-off trade is settled within the trading day by offsetting the initial position; no actual delivery is necessary.

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