n NISM Certifications
VII NISM Series VII
Medium

Identify the CORRECT statements regarding mark-to-market (MTM) margin in the equity segment: A. MTM margin is released along with pay-in, B. MTM loss is calculated by marking each transaction to the closing price, C. MTM loss can be adjusted against cash/cash equivalent component

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

Options

  1. A

    Only A and B

  2. B

    Only A and C

  3. C

    Only B and C

  4. All A, B and C

    Correct answer

Why this is the answer

MTM loss is calculated daily and can be adjusted against cash or equivalents. Collected margin is released along with pay-in.

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