Preparing for NISM Series VIII – Equity Derivatives Exam? Here’s What You Need to Know

NISM Series VIII – Equity Derivatives Exam is a popular certification program designed for individuals seeking to enhance their knowledge and skills in equity derivatives trading. The exam is conducted by the National Institute of Securities Markets (NISM) and is a requirement for anyone looking to work in the equity derivatives market. This article will discuss what you need to know when preparing for the NISM Series VIII – Equity Derivatives Exam.

Understand the Exam Structure

The NISM Series VIII – Equity Derivatives Exam is a computer-based test with a duration of 2 hours. The exam consists of 100 multiple-choice questions with a negative marking of 25% for incorrect answers. To pass the exam, you need to score at least 60% marks. The questions are designed to test your knowledge of equity derivatives trading, including market dynamics, products, trading strategies, and risk management.

The exam is divided into four sections:

1. Introduction to Equity Derivatives – This section covers the basics of equity derivatives, including types, features, and market structure.
2. Trading, Clearing, and Settlement – This section covers trading procedures, clearing mechanisms, and settlement procedures for equity derivatives.
3. Strategies – This section covers different equity derivatives trading strategies, including hedging, arbitrage, and speculation.
4. Risk Management – This section covers various types of risks associated with equity derivatives trading, including market risk, credit risk, and operational risk.

To prepare for the exam, it’s essential to understand the exam structure, syllabus, and weightage of each section. This will help you create a study plan and focus on the areas where you need improvement.

Study the Syllabus

The NISM Series VIII – Equity Derivatives Exam has a comprehensive syllabus that covers all aspects of equity derivatives trading. To prepare for the exam, you need to study the syllabus in detail and understand the concepts and theories behind each topic.

The syllabus is divided into nine units:

1. Introduction to Derivatives
2. Equity Derivatives
3. Trading, Clearing, and Settlement of Equity Derivatives
4. Regulatory Framework
5. Trading Strategies
6. Pricing of Derivatives
7. Option Greeks
8. Risk Management in Derivatives
9. Accounting and Taxation of Derivatives

Each unit has a specific weightage in the exam, and it’s essential to prioritize your studies accordingly. You can find the detailed syllabus on the NISM website.

Practice with NISM Mock Tests

One of the best ways to prepare for the NISM Series VIII – Equity Derivatives Exam is to practice with NISM Equity Derivatives Mock Test. The mock tests simulate the actual exam environment and help you assess your knowledge and skills.

There are many mock tests available online, and you can take them for free or at a nominal fee. The mock tests cover all sections of the exam and provide instant feedback on your performance.

Taking NISM mock tests is an excellent way to identify your strengths and weaknesses and fine-tune your exam strategy. You can use the feedback from the mock tests to focus on the areas where you need improvement and adjust your study plan accordingly. By practicing with mock tests, you can build your confidence and reduce the exam-day jitters. In conclusion, preparing for the NISM Series VIII – Equity Derivatives Exam requires a structured approach, including understanding the exam structure, studying the syllabus, enrolling in a training program, and practicing with mock tests. With proper preparation, you can pass the exam with flying colors and enhance your knowledge and skills in equity derivatives trading.