NISM Series XIII Common Derivatives Certification Exam Notes

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  • Fiat Money: Currency not backed by physical commodity but by government order; e.g., USD and INR today.
  • Clean Float vs Managed Float: Clean float is purely market-determined; managed float (dirty float) includes central bank interventions.
  • Major Currencies: USD, EUR, JPY, GBP, CHF, AUD, CAD.
  • Most Traded Currency Pairs: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CNY, USD/CHF.
  • Minor and Exotic Pairs: Minor pairs don’t involve USD; exotics combine major currency with developing country’s currency.

NISM Common Derivatives

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