n NISM Certifications
VII NISM Series VII
Medium

Dynamic price bands at 10% of the previous closing price is applied on __________.

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

Options

  1. A

    Stock Futures

  2. B

    Index Futures

  3. Both of the above

    Correct answer

  4. D

    None of the above

Why this is the answer

To prevent erroneous order entry, dynamic price bands are applied at +/-10% of the previous closing price for both stock and index futures.

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NISM Series VII Mock Test 3