n NISM Certifications
NSM General NISM
Medium

Which of the following statements about Position Limits is true?

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

Options

  1. A

    Position limit is the maximum daily volume at client level

  2. B

    Position limit is the maximum daily volume at trading member level

  3. C

    Position limit is the maximum daily volume at clearing member level

  4. None of the above

    Correct answer

Why this is the answer

Position limits refer to the maximum open interest (positions held overnight) allowed at the client, trading member, or institutional level—not daily volume.

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