n NISM Certifications
VII NISM Series VII
Medium

______ margin is payable on all open positions of clearing members, up to client level in the F&O segment.

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

Options

  1. A

    Mark to Market

  2. Initial

    Correct answer

  3. C

    Exposure

  4. D

    Premium

Why this is the answer

Initial margin is payable on all open positions in the F&O segment. It is computed using the SPAN (Standard Portfolio Analysis of Risk) system and ensures adequate coverage against potential losses.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.