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

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  • OTC Derivatives: Over-the-counter contracts negotiated privately, not traded on exchanges.
  • Exchange-Traded Derivatives: Standardized contracts traded on regulated exchanges with lower counterparty risk.
  • Counterparty Risk: Risk of default by one party in a derivative contract, higher in OTC markets.
  • Price Risk: Potential loss due to adverse price movements in the underlying asset.
  • Liquidity Risk: Inability to exit a derivative position due to insufficient market activity.

NISM Equity Derivatives

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