NISM 10A Investment Adviser Level 1 Notes

Page 87 Of 181

Go to:

  • Hedging Benefits: Protects portfolios from adverse price movements.
  • Speculative Risks: High leverage can lead to substantial losses if predictions fail.
  • Market Liquidity: Exchange-traded derivatives offer higher liquidity than OTC.
  • Regulatory Oversight: SEBI regulates derivatives to ensure transparency and fairness.
  • Commodity Hedging: Used by producers and consumers to lock in prices.

NISM 10A NISM Investment Adviser Level 1

MODELEXAM MODELEXAM®