n NISM Certifications
VII NISM Series VII
Medium

Only orders with Immediate or Cancel (IOC) attributes are permitted during the risk reduction mode. True or False?

Practice question from NISM Series VII Mock Test 4 — 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 90% of a broker’s margin is utilized, the system enters Risk Reduction Mode. In this mode, only IOC orders (Immediate or Cancel) are allowed to prevent excessive risk exposure.

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