NISM Series 8 (NISM VIII): Equity Derivatives Certification Exam Notes

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  • Contango: When futures price exceeds spot price, indicating carrying costs.
  • Backwardation: When futures price is below spot price, often due to convenience yield.
  • Leverage: Futures allow high exposure with low initial capital.
  • Payoff Chart: Graphical representation of profit/loss at futures expiry.
  • Long Futures: Buying futures expecting price appreciation.

NISM Equity Derivatives

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