n NISM Certifications
VII NISM Series VII
Medium

Only orders with 'Immediate or Cancel' attribute shall be permitted in the Risk Reduction Mode of Stock Exchanges – True or False?

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

When a broker’s collateral exceeds 90% utilization, the system cancels all unexecuted orders except those with 'Immediate or Cancel' to reduce risk.

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