NISM 10A Investment Adviser Level 1 Notes

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  • Purpose of Derivatives: Used for hedging risks, speculating on price movements, or arbitrage.
  • Benefits of Derivatives: Offer leverage, risk management, and price discovery.
  • Derivative Costs: Include transaction fees, margins, and potential losses from leverage.
  • Derivative Risks: Market, credit, and liquidity risks due to volatility and complexity.
  • Equity Derivatives: Based on stocks or indices, used for hedging or speculation.

NISM 10A NISM Investment Adviser Level 1

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