Why NISM/XIII exam guide

NISM Series XIII: Common Derivatives

Equity, currency and interest rate derivatives. Everything you need to know before you book, and a free way to prepare.

150 questions180 minutes60% to passNISM fee ₹3,000

Start the free course 10-question sample test

150Questions

180 minDuration

60%Pass mark

YesNegative marking

₹3,000NISM fee

3 yearsValid for

NISM Series XIII, Common Derivatives, covers equity, currency and interest rate derivatives in one exam. It is used on broking and derivatives desks, and together with V-A it is a route to SIF distribution.

Who should take it

Students who want to work on broking, dealing or derivatives sales desks
V-A holders who want to distribute SIFs
Anyone who wants futures and options across equity, currency and interest rates in one certificate

What it opens up

Derivatives roles at brokers and banks that ask for NISM derivatives certification
With V-A, a route to SIF distribution

See careers

Syllabus weightage

Where the marks are.

The heaviest units are trading, clearing and risk management, the underlying markets, and strategies using futures. Option payoffs and the Greeks reward practice with numbers, so work the formula cards until they are automatic.

Share of questions per unit in the FundsSchool Final exam, built to NISM’s syllabus units. The current NISM workbook is the final word on weightage.

Trading, Clearing, Settlement & Risk Management17%

Introduction to the Underlying Markets16%

Strategies Using Futures16%

Introduction to Options15%

Introduction to Forwards and Futures13%

Legal and Regulatory Environment9%

Basics of Derivatives4%

Accounting and Taxation4%

Sales Practices, Code of Conduct and Investor Protection Measures3%

Option Trading Strategies3%

The syllabus, chapter by chapter

14 chapters, about 2.5 hours.

Every chapter is free to read here, with a worked example, the exam trap and a three-question check.

01Basics of derivatives10 min · What a derivative is, the four building blocks, OTC versus exchange-traded, who trades them, and how India got here.02Understanding the index10 min · How Nifty 50 and Sensex are built on free-float market cap, what impact cost measures, and index funds versus index…03Forwards and futures10 min · Cost-of-carry pricing, basis, contango and backwardation, payoff lines, initial and maintenance margin, daily…04Options: basics and payoffs9 min · Calls and puts, moneyness, intrinsic and time value, European versus American, and long and short payoffs…05Option pricing and the Greeks9 min · What moves an option premium, put-call parity with numbers, the Black-Scholes inputs, and delta, gamma, theta, vega…06Trading strategies10 min · Beta hedging with index futures, covered calls, protective puts, bull and bear spreads, straddles, strangles…07Trading systems, clearing, settlement and risk management11 min · Order types, how the clearing corporation guarantees trades, SPAN and exposure margins, daily and final settlement…08Currency markets: basics10 min · How exchange rates are quoted, spot versus forward, why interest rates drive forward rates, and who regulates…09Currency futures10 min · Contract specifications for USD/INR and other pairs, pricing from the interest differential, margins, settlement…10Currency options and operations10 min · USD/INR options on the exchange: premium quoting, payoffs, hedging an importer or exporter, settlement, margins…11Interest rates and fixed income basics9 min · G-Secs and T-bills, the price-yield relation, yield to maturity, Macaulay and modified duration with a worked example…12Interest rate futures and options10 min · Cash-settled G-Sec futures and T-bill futures, MIBOR and overnight index swaps, interest rate options…13Legal and regulatory environment, accounting and taxation11 min · SCRA, the SEBI Act, exchange bye-laws, F&O stock eligibility, how derivatives are accounted for, and how F&O income…14Sales practices, code of conduct and investor protection12 min · KYC and the risk disclosure document, suitability, unauthorised trading, contract notes, margin collection…

A study plan that fits

Four weeks, 30 minutes a day.

A comfortable pace alongside college or work. In the app, set your exam date and it plans each day for you.

Week 1Chapters 1 to 7

One chapter a day with its quick check. About 69 minutes of reading in all.

Week 2Chapters 8 to 14

Same rhythm. About 72 minutes of reading. Review your exam-trap cards at the weekend.

Week 3Practise

Chapter tests on your weakest chapters, Quick 20s every day, then your first full-length practice mock.

Week 4Exam ready

A second mock, then the Final exam on the real clock. Revise the chapters it flags and book your NISM slot.

Don’t lose easy marks

Traps people fall for.

A sample from the course. Every chapter marks the trap the exam likes to set.

Chapter 1

Exam trap. Contract value is price times lot size, not price times number of lots. Three lots of Nifty at 24,000 are worth 3 × 75 × 24,000 = ₹54,00,000. And when a question says the trader "paid" to enter a futures contract, it is the margin, not the contract value, that changes hands.

Read “Basics of derivatives”

Chapter 4

Exam trap. Moneyness is about spot versus strike only. It ignores the premium. A 24,200 call with Nifty at 24,000 is OTM even if the premium has doubled since you bought it. Break-even, which does include the premium, is a different question.

Read “Options: basics and payoffs”

Chapter 7

Exam trap. The option buyer does not pay SPAN or exposure margin; the premium is the whole cost and the whole risk. The option writer pays SPAN plus exposure margin because the loss is open-ended. A question that says "the buyer of a call deposits initial margin" is wrong.

Read “Trading systems, clearing, settlement and risk management”

Chapter 10

Exam trap. Importers buy calls, exporters buy puts. Candidates reverse this because they think of the exporter as "selling dollars" and link selling to calls. Think of what each party fears: the importer fears a high rate, and a call pays when the rate is high.

Read “Currency options and operations”

Formulas to know

Learn these cold.

Chapter 1

Contract value = Price × Lot size × Number of lots

Chapter 4

Intrinsic value of a call = max(S − K, 0); of a put = max(K − S, 0). Time value = Premium − Intrinsic value

Chapter 7

Upfront margin on a futures or short option position = SPAN margin + Exposure margin; daily MTM = (today's settlement price − previous settlement price) × lot

Chapter 11

T-bill yield = (100 − Price) ÷ Price × 365 ÷ Days to maturity

Try ten questions now.

A free XIII sample test across the syllabus, every answer explained. Takes about ten minutes.

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XIII, answered

Questions about this exam.

How many questions are in NISM Series XIII?

150 questions in 180 minutes. You need 60% to pass, and wrong answers carry negative marks, so skip what you truly don’t know. Confirm the current pattern on the NISM portal before you book.

How long should I prepare?

Our 14-chapter course takes about 2.5 hours to read. Add chapter tests and two practice mocks, and three to four weeks at around 30 minutes a day is a comfortable pace. Use the Final exam in the app to check you’re ready before you book.

What does it cost?

NISM charges ₹3,000 to enrol (as listed when we last checked). Preparing on FundsSchool is completely free: every chapter, question, mock and the Final exam.

How long is the certificate valid?

Three years from the date you pass. Plan your renewal before it lapses; NISM lists the renewal options for each certificate on its portal.

Are FundsSchool questions from the real exam?

No. Every question is original practice material written to the official syllabus and pattern. NISM does not publish its exam questions.

The app · arriving Diwali · 8 Nov 2026

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