NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Cash Settlement Limitation: Leads to imperfect hedging outcomes.
  • Leverage Risk: High leverage amplifies potential losses.
  • Liquidity Risk: May affect ability to enter/exit positions.
  • Hedging Effectiveness: Depends on correlation with underlying exposure.
  • Speculative Risk: High leverage increases loss potential.

NISM Interest Rate Derivatives

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