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Academy/NISM Series XIII/Chapter 7
7
Chapter 7 of 10

Trading, Clearing, Settlement & Risk Management

25 marks (17%)~8 hours study13 sections · 12 practice questions

Learning objectives

  • Describe the trading workflow for derivatives on Indian exchanges.
  • Explain the role and mechanics of the clearing house.
  • Identify margin types — initial, exposure, MTM, ELM, special margin.
  • Articulate the SPAN margining methodology at a high level.
  • Apply position-level and broker-level risk controls.

Topics covered

01Trading workflow — order types, lot sizes, market lots
02Role of the clearing corporation
03Margin types — initial, exposure, MTM, ELM, additional
04SPAN methodology
05Mark-to-market mechanics
06Position limits — client, member, market-wide
07Settlement — physical vs cash
08Default management and the settlement guarantee fund

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A peek at what's inside Chapter 7:

13
study sections
First section: "Why this chapter matters"
20
cheat-sheet terms
Includes: Novation, Clearing corporation, Trading member...
12
practice MCQs
Interactive — click an option to reveal the correct answer + explanation
3 underlying tabs
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NFO OPENAltiva by Edelweiss — Equity Ex-Top 100 Long-Short|May 18 to June 1, 2026|Invest Now•NFO OPENiSIF Active Asset Allocator Long-Short by ICICI Prudential|May 19 to June 2, 2026|Invest Now•NFO OPENiSIF Equity Long-Short by ICICI Prudential|May 19 to June 2, 2026|Invest Now•NOW IN BETASIF Prime Academy|NISM Series XIII exam prep — free for partners|Start Studying•
NFO OPENAltiva by Edelweiss — Equity Ex-Top 100 Long-Short|May 18 to June 1, 2026|Invest Now•NFO OPENiSIF Active Asset Allocator Long-Short by ICICI Prudential|May 19 to June 2, 2026|Invest Now•NFO OPENiSIF Equity Long-Short by ICICI Prudential|May 19 to June 2, 2026|Invest Now•NOW IN BETASIF Prime Academy|NISM Series XIII exam prep — free for partners|Start Studying•
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