NISM Series VIII – Equity Derivatives: Pass in Your First Attempt

Chapter 1: Basics of Derivatives
11 Lessons
- Why this chapter matters
  Start
- 1. What Exactly Is a Derivative?
  Start
- 2. A Very Short History (Global)
  Start
- 3. The Indian Story — This Part Gets Tested More Often
  Start
- 4. The Four Building Blocks of Derivatives
  Start
- 5. Who Trades Derivatives — The Three Personalities
  Start
- 6. Exchange-Traded vs. OTC — A Side-by-Side View
  Start
- 7. Why Derivatives Markets Matter (Their "Job" in the Financial System)
  Start
- 8. The Risk Side — What Can Go Wrong
  Start
- Chapter 1 Summary Sheet (for quick pre-exam revision)
  Start
- Practice Quiz
  Start
Chapter 2: Understanding the Index
10 Lessons
- Why this chapter matters
  Start
- 1. What Is an Index, Really?
  Start
- 2. The Four Index Construction Methods
  Start
- 3. Liquidity and Impact Cost
  Start
- 4. Index Management: Construction, Maintenance, Revision
  Start
- 5. Recent Regulatory Update: Concentration Limits on Non-Benchmark Indices
  Start
- 6. Major Indices in India (know the names, not just Sensex/Nifty)
  Start
- 7. Applications of an Index — Beyond Just "Tracking the Market"
  Start
- Chapter 2 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 3: Introduction to Forwards and Futures
12 Lessons
- Why this chapter matters
  Start
- 1. Forwards: The Starting Point
  Start
- 2. Futures: Forwards, Standardized and Exchange-Guaranteed
  Start
- 3. Contract Specifications — Reading a Real Futures Quote
  Start
- 4. Key Terminology — This Is Where Most Marks Live
  Start
- 5. Forwards vs. Futures — Side-by-Side
  Start
- 6. Payoff Charts for Futures — The First Diagrams You Must Master
  Start
- 7. Futures Pricing — The Numerical Core of This Chapter
  Start
- 8. Price Convergence at Expiry
  Start
- 9. Who Uses Futures, and Why
  Start
- Chapter 3 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 4: Introduction to Options
15 Lessons
- Why this chapter matters
  Start
- 1. The Core Idea: A Right, Not an Obligation
  Start
- 2. Option Terminology — Building the Vocabulary
  Start
- 3. Contract Specifications for Exchange-Traded Options
  Start
- 4. Moneyness — Is the Option "Worth Exercising" Right Now?
  Start
- 5. Intrinsic Value and Time Value
  Start
- 6. Payoff Diagrams — The Four Basic Option Positions
  Start
- 7. Options vs. Futures — The Core Distinction
  Start
- 8. What Actually Determines an Option's Price? — The Five Inputs
  Start
- 9. The Option Greeks — Five Sensitivity Measures
  Start
- 10. Option Pricing Models
  Start
- 11. Implied Volatility — Running the Model Backward
  Start
- 12. Choosing Which Option to Trade: ITM vs. ATM vs. OTM (Buyer's Perspective)
  Start
- Chapter 4 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 5: Strategies Using Equity Futures and Equity Options
18 Lessons
- Why this chapter matters
  Start
- PART A - Futures-Based Strategies : 1. Hedging with Futures
  Start
- PART A - Futures-Based Strategies : 2. Hedging a Portfolio Using Index Futures
  Start
- PART A - Futures-Based Strategies : 3. Using Futures for Speculation
  Start
- PART A - Futures-Based Strategies : 4. Arbitrage Using Futures
  Start
- PART B - Option Trading Strategies : Overview
  Start
- PART B - Option Trading Strategies : 5. Vertical Spreads (Same Expiry, Different Strikes)
  Start
- PART B - Option Trading Strategies : 6. Straddles (Same Strike, Betting on Big Movement, Direction Unknown)
  Start
- PART B - Option Trading Strategies : 7. Strangles (Similar Idea to Straddle, Cheaper, Different Strikes)
  Start
- PART B - Option Trading Strategies : 8. Covered Call and Protective Put — The Two Classic Hedged Positions
  Start
- PART B - Option Trading Strategies : 9. Collar (Covered Call + Downside Floor)
  Start
- PART B - Option Trading Strategies : 10. Butterfly Spread (Capping a Short Straddle's Unlimited Risk)
  Start
- PART C - Options for Pure Hedging (Insurance Logic)
  Start
- PART D: Arbitrage Using Options — Put-Call Parity
  Start
- PART E: Delta-Hedging
  Start
- PART F: Interpreting Open Interest and Put-Call Ratio
  Start
- Chapter 5 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 6: Trading Mechanism
14 Lessons
- Why this chapter matters
  Start
- 1. How Trading Actually Happens
  Start
- 2. Entities in the Trading Ecosystem
  Start
- 3. Order Types
  Start
- 4. Price Bands in the Derivatives Segment — Recent Changes (important, exam-relevant)
  Start
- 5. Eligibility Criteria — Which Stocks/Indices Qualify for Derivatives
  Start
- 6. Corporate Action Adjustments — The Core Principle and the Math
  Start
- 7. Trading Costs — What Actually Gets Deducted
  Start
- 8. Algorithmic Trading — Especially the New (Oct 2025) Regulatory Framework
  Start
- 9. Tracking Futures & Options Data
  Start
- 10. Investor Risk Reduction Access (IRRA) Platform — A Genuinely New Safety Net (know this)
  Start
- Chapter 6 Summary Sheet
  Start
- Practice Questions
  Start
- Notes for the Video/Recording Script
  Start
Chapter 7: Clearing, Settlement and Risk Management
17 Lessons
- Why this chapter matters
  Start
- 1. The Clearing Corporation's Central Role
  Start
- 2. Clearing Members — Types and Eligibility
  Start
- 3. The Clearing Mechanism — How Open Positions Are Aggregated
  Start
- 4. Interoperability of Clearing Corporations
  Start
- 5. Settlement of Futures Contracts
  Start
- 6. Settlement of Options Contracts
  Start
- 7. Risk Management — The SPAN Margining System
  Start
- 8. Peak Margin and the "Beginning of Day" (BOD) Framework
  Start
- 9. Cross Margining, Early Pay-in, and the Pledge/Repledge Mechanism
  Start
- 10. Position Limits — Preventing Concentration and Manipulation
  Start
- 11. Violations and Penalties — What Triggers Enforcement
  Start
- 12. Settlement of Client Running Accounts
  Start
- 13. Settlement Guarantee Fund (SGF) and Investor Protection Fund (IPF)
  Start
- 14. Cyber Security and Cyber Resilience Framework (CSCRF) — New Topic, Flag Clearly
  Start
- Chapter 7 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 8: Legal and Regulatory Environment
14 Lessons
- Why this chapter matters
  Start
- 1. The Two Foundational Acts
  Start
- 2. SCRA, 1956 — What Counts as a "Security"
  Start
- 3. SEBI Act, 1992 — SEBI's Mandate and Powers
  Start
- 4. Regulatory Framework for Derivatives Trading — The Gupta Committee's Operational Legacy
  Start
- 5. Collateral Deposits — Cash vs. Non-Cash Components
  Start
- 6. Clearing Corporation's Regulatory Responsibilities
  Start
- 7. Trade Guarantee Fund (TGF) — Distinct from SGF/IPF (Chapter 7)
  Start
- 8. Eligibility Criteria for Derivatives Segment Membership — The Specific Numbers
  Start
- 9. Standard Operating Procedure — Default by a Trading Member or Clearing Member
  Start
- 10. Standard Operating Procedure — Stock Exchange Outage (recent framework, know it well)
  Start
- Chapter 8 Summary Sheet
  Start
- Practice Questions
  Start
- Notes for the Video/Recording Script
  Start
Chapter 9: Accounting and Taxation
13 Lessons
- Why this chapter matters
  Start
- PART A: Accounting for Derivatives | 1. Forward Contracts (Accounting Standard – 11)
  Start
- PART A: Accounting for Derivatives | 2. Accounting for Equity Index/Stock Futures — In the Client's Books
  Start
- PART A: Accounting for Derivatives | 3. Accounting for Equity Index Options (Cash-Settled)
  Start
- PART A: Accounting for Derivatives | 4. Accounting in Case of Default
  Start
- PART A: Accounting for Derivatives | 5. Disclosure Requirements
  Start
- PART B: Taxation of Derivatives | 6. How F&O Income Is Classified — The Core Rule
  Start
- PART B: Taxation of Derivatives | 7. Foreign Portfolio Investors — A Different Tax Treatment Entirely
  Start
- PART B: Taxation of Derivatives | 8. Presumptive Taxation — Section 44AD
  Start
- PART B: Taxation of Derivatives | 9. Tax Audit Requirements — A Genuinely Testable Numerical Table
  Start
- PART B: Taxation of Derivatives | 10. Securities Transaction Tax (STT) on Derivatives — Current Rates
  Start
- Chapter 9 Summary Sheet
  Start
- Practice Questions
  Start
Chapter 10: Sales Practices and Investor Protection Services
13 Lessons
- Why this chapter matters
  Start
- 1. Ethical Sales Conduct — The Foundational Principle
  Start
- 2. Understanding the Client's Risk Profile
  Start
- 3. The Risk Disclosure Document (RDD) — Core Compliance Instrument
  Start
- 4. Anti-Money Laundering (AML) — The PMLA Framework
  Start
- 5. KYC Documentation — What Gets Collected
  Start
- 6. Suspicious Transaction Reporting (STR)
  Start
- 7. Social Media Disclosure Requirements — Genuinely New, Directly Relevant
  Start
- 8. Investor Grievance Redressal Mechanism
  Start
- 9. Online Dispute Resolution (ODR) Portal — SMARTODR
  Start
- 10. General Do's and Don'ts for Investors — A Practical Closing Checklist
  Start
- Chapter 10 Summary Sheet
  Start
- Practice Questions
  Start

NISM Series VIII – Equity Derivatives: Pass in Your First Attempt

Course Summary

Course Curriculum

Chapter 1: Basics of Derivatives

Chapter 2: Understanding the Index

Chapter 3: Introduction to Forwards and Futures

Chapter 4: Introduction to Options

Chapter 5: Strategies Using Equity Futures and Equity Options

Chapter 6: Trading Mechanism

Chapter 7: Clearing, Settlement and Risk Management

Chapter 8: Legal and Regulatory Environment

Chapter 9: Accounting and Taxation

Chapter 10: Sales Practices and Investor Protection Services

Neeraj Jaiswal

John Smith

Highly Recommended Course. Easy to Understand, Informative, Very Well Organized. The Course is Full of Practical and Valuable for Anyone who wants to Enhance their Skills. Really Enjoyed it. Thank you!!

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