n NISM Certifications
NSM General NISM
Medium

The total number of outstanding derivative contracts is referred to as __________.

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Open interest

    Correct answer

  2. B

    Long position

  3. C

    Short position

  4. D

    Neutral position

Why this is the answer

Open interest is the total number of open or unsettled derivative contracts in the market. It indicates market activity and liquidity for a specific derivative.

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