NISM Series XIII Common Derivatives Certification Exam Notes

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  • Impact Cost Formula: Measures the cost of executing a trade relative to ideal price.
  • Forwards: Customized contracts to buy/sell an asset at a future date at an agreed price.
  • Futures: Standardized forward contracts traded on exchanges with guaranteed settlement.
  • Clearing Corporation: Acts as a counterparty, reducing default risk in futures.
  • Margin Requirements: Initial and maintenance margins ensure financial discipline.

NISM Common Derivatives

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