n NISM Certifications
VII NISM Series VII
Medium

Margin requirements for derivatives include:

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

Options

  1. A

    Initial margin

  2. B

    Mark-to-market margin

  3. C

    Extreme loss margin

  4. All of the above

    Correct answer

Why this is the answer

Derivative trading requires multiple margins to cover potential losses, including upfront payment (initial), daily adjustments (MTM), and additional coverage (extreme loss).

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