NISM Series XIII Common Derivatives Certification Exam Notes
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Spread Order Book: Allows execution of calendar spreads to trade the price difference between contracts of different maturities.
Calendar Spread: Simultaneous buy/sell of same contracts with different expiry dates to manage risk and margin requirements.
Order Matching Rule: Continuous price-time priority; best buy price is the highest bid and best sell price is the lowest ask; active orders match passive orders.
Passive and Active Orders: Unmatched orders are passive; new incoming orders that match existing ones are active.
Order Management: Covers entry, modification, cancellation, and matching of orders with defined price, time, and quantity conditions.
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