n NISM Certifications
NSM General NISM
Medium

The main purpose of 'Netting' in derivatives markets is to:

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Increase the number of trades

  2. Reduce credit and settlement risk (Correct)

    Correct answer

  3. C

    Maximize profits

  4. D

    Reduce transaction costs arbitrarily

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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