n NISM Certifications
VII NISM Series VII
Medium

Which margin(s) have to be collected by the member from its clients on an upfront basis?

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

Options

  1. A

    Delivery Margin

  2. B

    Mark to market margin

  3. Initial margin and Extreme loss margin

    Correct answer

  4. D

    All of the above

Why this is the answer

Clearing Members must collect initial and extreme loss margins upfront from clients in both cash and F&O segments. Delivery margins are not collected upfront.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.