NISM Series XVI-Commodity Derivatives
Commodity derivatives markets are becoming increasingly popular due to their stability and security. Trading in commodity derivatives is a fast-growing financial sector, with strong prospects for growth as more people enter the market. The NISM Series XVI-Commodity Derivatives examination enables a better understanding of various derivatives products available in these markets, regulations and risks associated with the products, and mechanisms of trading, clearing, and settlement.
More About the NISM Series XVI-Commodity Derivatives Exam
Commodity derivatives markets and their products exist to allow for the creation, purchase, and sale of commodities in a standardized format. This wide availability of standardized commodities with attendant price fluctuations can be a suitable and attractive investment option for many. The Commodity Derivatives examination is a standardized test that, if passed, will allow the examinee to trade and/or sell commodity derivatives on recognized stock exchanges.
This exam covers such things as the definition of commodity derivatives, how they are traded, cleared, and settled. The goal of this examination is to produce a common minimum knowledge benchmark for all associated persons wishing to engage in the trading of commodity derivatives on recognized stock exchanges.
NISM Series XVI – Commodity Derivatives Interview Questions
Exam Objectives
On successful completion of the NISM Series XVI-Commodity Derivatives examination, candidates will have mastered the following:
- Indian commodity derivatives markets
- Various trading strategies that are built using commodity derivatives
- Clearing, settlement, and risk management along with an operational mechanism
- The regulatory environment where the commodity derivatives markets operate in India
Exam Details
| Exam Name Commodity Derivatives Certification | Exam Code NISM Series XVI |
| Exam Duration 120 mins | Exam Format Multiple Choice Questions |
| Total Marks 100 | Number of Questions 100 Questions (1 mark each) |
| Exam Marking Negative marking(0.25 marks deducted for each wrong answer) | Exam Fee $165 USD |
| Exam Language English | Pass Score 60% and above |
For more info check: NISM Series XVI FAQ – Commodity Derivatives
Course Outline
The NISM Series XVI – Commodity Derivatives Certification exam covers the following topics –
- Module 1 – Understanding the Commodity Markets (10 marks)
- Module 2 – Overview of Commodity Futures (17 marks)
- Module 3 – Overview of Commodity Options (12 marks)
- Module 4 – Understanding Commodity Indices (5 marks)
- Module 5 – Understand the uses of Commodity Derivatives (12 marks)
- Module 6 – Overview of Trading Mechanism (17 marks)
- Module 7 – Understanding Clearing, Settlement and Risk Management (17 marks)
- Module 8 – Overview of Accounting and Taxation (5 marks)
- Module 9 – Understanding Legal and Regulatory Environment of Commodity Derivatives in India (5 marks)
Preparation Guide for NISM Series XVI-Commodity Derivatives Exam
Learning Resource 1 – Get Familiar with the Exam Objectives
It stands to reason that a deep analysis of the exam is your best bet at doing well. To ensure a high score on the exam, prepare for it by understanding the objectives of the test and evaluating each subject. Then study the domains that correspond to your job description, which will help you learn about these subjects with ease and ensure a certification that will be valued by your employer.
The Objectives of the NISM Series XVI-Commodity Derivatives Exam are –
- Understanding the Commodity Markets
- Overview of Commodity Futures
- Overview of Commodity Options
- Understanding Commodity Indices
- Understand the uses of Commodity Derivatives
- Overview of Trading Mechanism
- Understanding Clearing, Settlement, and Risk Management
- Overview of Accounting and Taxation
- Understanding Legal and Regulatory Environment of Commodity Derivatives in India
Learning Resource 2 – Study Guide and Study Material
NISM offers a well-organized study guide for candidates who wish to take its certification exam. The study guide contains detailed and informative expositions of the objectives on the NISM certifications, helping you acquaint yourself with the perspectives of the NISM credentials.
Join Online Discussion Forums
Joining online forums will help you discuss your problems with other people taking the same exam. In addition to this, you will be able to see how your competitors are preparing for the exams. One advantage of joining an online forum is that it enables you to reach out to a wider audience than an offline forum does. This will not only train you but also give you an idea of where you stand in the competition. This will in turn keep you motivated throughout.
Evaluate yourself with Practice Tests!
Solving practice tests cannot be underestimated. The more you solve, the more you will get to know the exam environment. This will increase your confidence and reduce the chance of you committing mistakes. Remember, practice makes a man perfect. So, boost your confidence with our NISM Series XVI-Commodity Derivatives Free Practice Tests now!
