NISM Series VIII: Equity Derivatives examination

Futures and options on shares and indices: how they are priced, traded, settled and used. A calculation-heavy paper with negative marking.

Examination facts

Source: the page of this examination on nism.ac.in. Fees and rules are revised from time to time; the page is the authority.

Who takes it

Series VIII is the examination for people who work in the equity derivatives segment of a trading member: dealers, sales staff and those who support them. Employers in broking name it as a requirement for such roles. It is also taken by traders and students who want a structured understanding of futures and options. If you are taking it for a job, confirm with the employer's compliance team that this, and not the Common Derivatives examination (Series XIII), is the one required.

Chapter outline

These are the chapter titles of the curriculum on NISM's page for this examination, as read on 12 November 2026. The test objectives on the same page say what is expected from each chapter, and the workbook is the text. Check the page for the current edition.

1. Basics of Derivatives
2. Understanding Index
3. Introduction to Forwards and Futures
4. Introduction to Options
5. Strategies using Equity futures and Equity options
6. Trading Mechanism
7. Introduction to Clearing and Settlement System
8. Legal and Regulatory Environment
9. Accounting and Taxation
10. Sales Practices and Investors Protection Services

How to prepare for this paper

Two things set this paper apart from the mutual fund papers: a pass mark of 60%, and a deduction of a quarter mark for every wrong answer. Sixty correct answers with forty wrong ones is a score of 50 and a fail.

• Master payoffs. Every option question at expiry is the same small calculation. Work through option payoffs until you can do one in twenty seconds.
• Master futures arithmetic: profit and loss, contract value, cost of carry, basis, hedging with beta. See futures pricing.
• Learn strategies by drawing them. For each spread, straddle and strangle, sketch the payoff and mark the maximum profit, maximum loss and break-even points. A drawn strategy is remembered; a memorised table is not.
• Read trading, clearing, margins and regulation from the current workbook. Contract specifications, margin rules and position limits are revised by the exchanges and the regulator; do not trust figures from old notes or from any website, including this one.
• Practise with the penalty on. Our timed test deducts 0.25 for wrong answers in this module. Learn to leave pure guesses: see negative marking.

Practice questions

We have written 33 questions of our own for this examination, each with an explanation. Read all 33 with answers Take them as a test

After passing

The certificate validity shown on NISM's page is three years; read the module's FAQ for how to renew. A certificate shows knowledge of the product; it is not a recommendation to trade. Derivatives are leveraged, and losses can exceed the money put up as margin.

Questions candidates ask

Other examinations

Guides

An independent practice site. NISM is the National Institute of Securities Markets. This site is not connected with, approved by or paid by NISM or SEBI, and uses none of their logos. The questions are our own; none is taken from NISM's question bank, workbooks or mock tests, and a score here does not predict a result. Examination facts were read on nism.ac.in on 12 November 2026 and can change: check the page of your module on nism.ac.in before you pay or prepare. Nothing here is investment advice.