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

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  • Legal/Regulatory Risk: Risk that derivative contracts may not be enforceable due to legal issues.
  • Operational Risk: Losses from inadequate systems or processes in derivatives trading.
  • Leverage: Derivatives allow high exposure with low capital, amplifying both gains and losses.
  • Hedging: Using derivatives to reduce price risk of an underlying asset.
  • Speculation: Taking directional bets on price movements using derivatives for potential profits.

NISM Equity Derivatives

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