n NISM Certifications
VII NISM Series VII
Medium

The derivatives segment in India allows trading in ______.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Commodities

  2. B

    Equities

  3. C

    Currency

  4. All of the above

    Correct answer

Why this is the answer

The derivatives segment in India provides a platform for trading contracts whose value is derived from an underlying asset. This includes commodity derivatives (like gold, oil, and agricultural products), equity derivatives (like stock and index futures and options), and currency derivatives (like USD/INR or EUR/INR futures and options). Trading in all these instruments helps investors hedge risks, speculate, and manage price fluctuations across multiple asset classes.

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NISM Series VII Mock Test 4