n NISM Certifications
VII NISM Series VII
Medium

How is a trading member’s open position arrived at?

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. By summing up proprietary and client positions

    Correct answer

  2. B

    By summing up proprietary and custodian positions

  3. C

    By summing up client and custodian positions

  4. D

    None of the above

Why this is the answer

Open positions include net proprietary positions plus net positions of clients. They determine exposure and margin requirements.

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