n NISM Certifications
NSM General NISM
Medium

A trading member has two clients - Client A and Client B. Client A has a net long position of 12 and Client B has a net short position of 10. What is the net position for the trading member?

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Long 2

  2. B

    Long 12

  3. C

    Short 10

  4. Long 12 and short 10

    Correct answer

Why this is the answer

For client positions, the trades cannot be netted across clients. Each client’s position is shown separately.

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