Practice Test

Q1) The maximum brokerage chargeable by a trading member in relation to trades affected in the contracts admitted to dealing on the F&O segment of NSEIL is fixed at ______ of the contract value, exclusive of statutory levies. Show Answer

Q2) The following is an example of an order with time condition Show Answer

Q3) On the derivative Exchange, all the orders entered on the Trading System are at exclusive of brokerage Show Answer

Q4) Transaction tax is payable by the _______ of the derivative instrument. Show Answer

Q5) On expiry, the settlement price of an index futures contract is _____. Show Answer

Q6) The NEAT F&O trading system _____. Show Answer

Q7) To be eligible for options trading, the market wide positions limit (MWPL) in the stock shall not be less than ______ . Show Answer

Q8) Mr. Rohit has bought 8 lots of contract of June BSE Sensex futures & sold 6 lots of contracts of July BSE Sensex futures. What is his regular non-spread open position? Show Answer

Q9) The ask price is always greater than Bid price. Show Answer

Q10) ________ denotes the European CALL option. Show Answer

Q11) ________ denotes the American PUT option. Show Answer

Q12) ________ denotes the American CALL option. Show Answer

Q13) __________ gives information about the top gainers in the futures market in a daily newspaper. Show Answer

Q14) __________ gives information about the top losers in the futures market in a daily newspaper. Show Answer

Q15) Dividends which are below 10% of the market value of the underlying stock would be deemed to be ordinary dividends and no adjustment in the Strike Price would be made for ordinary dividends. Show Answer

Q16) On expiry, the settlement price of Wipro will be the ________. Show Answer

Q17) 26th Jan is the last Thursday of the month which is a public holiday. So the derivative contract for the Jan series will expire on ______. Show Answer

Q18) When a clearing member/ broker make unnecessary transaction in his clients account with the sole aim of making commissions is known as, _________. Show Answer

Q19) As per the regulation, the minimum contract value of a futures contract shall not be less than Rs. 1Lakh. Show Answer

Q20) Mr. A has bought 300 shares of XYZ & wants to protect himself if price falls. Which of the below option will be preferred by him? Show Answer

Q21) To be eligible for options trading, the market wide position limit in the stock should not be less than Rs.________ Show Answer

Q22) _______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system Show Answer

Q23) Transaction tax is payable by the ______ of the derivative instrument Show Answer

Q24) Which of the following is the duty of the trading member? Show Answer

Q25) A trader has bought 100 shares of XYZ at Rs.780 per share. He expects the price to go up but wants to protect himself if the price falls. He doesn’t want to lose more than Rs.1000 on this long position in XYZ. What should the trader do? Show Answer

Q26) A penalty or suspension of registration of a stock broker from derivatives exchange/segment under the SEBI (Stock Broker and Sub-broker) Regulations, 1992 can take place if ________ Show Answer

Q27) What is the outstanding position on which initial margin will be levied if no proprietary is done and the details of client trading are: one client buys 500 units @1260.The second client buys 900 units @Rs.1255 and sells 1000 units @Rs.1260? Show Answer

Q28) What is the outstanding position on which initial margin will be levied if no proprietary is done and the details of client trading are: one client buys 500 units @1260.The second client buys 900 units @Rs.1255 and sells 1000 units @Rs.1260? Show Answer

Q29) Ms. Shetty has sold 5000 calls on ABC Ltd. at a strike of rs.500 for a premium of Rs.25 per call on April 1.The closing price of equity shares of ABC Ltd. Is Rs.505 on that day. If the call option is assigned against her on that day, what is her obligation on April 01? Show Answer

Q30) A stock broker is allowed to buy, sell or deal in securities __________ Show Answer

Q31) ______ order allows the user to execute a contract as soon as it is entered into the system, failing which the order is immediately cancelled from the system Show Answer

Q32) NSE follows ______ membership structure stipulated by SEBI. Show Answer

Q33) To be eligible for options trading, the market wide position limit in the stock should not be less than Rs _____ Show Answer

Q34) On the derivative exchanges, all the orders entered on the Trading System are at prices exclusive of brokerage. Show Answer

Q35) A penalty or suspension of registration of a stock broker from derivatives exchange/ segment under the SEBI (Stock Broker and Sub-broker) Regulations, 1992 can take place if _______________. Show Answer

Q36) In India, futures & options on individual stocks are allowed on _____. Show Answer

Q37) Initial margin is calculated based on _____ Show Answer

Q38) The main logic behind position limits is to _______. Show Answer

Q39) A trader purchases 3 contracts of Reliance Industries in the futures market at Rs.900. on the expiry day, Reliance closes at Rs.918. Lot size is 250 shares. What will be the trader receive? Show Answer

Q40) When the price of a futures contract goes down, the margin account of the buyer of this futures contract is debited for the loss. Show Answer

Q41) Operational risks include losses due to Show Answer

Q42) What is the outstanding position which initial margin will be levied if no proprietary trading is done and the details of client trading are: one client buys 2000 units @1260.The second client buys 2000 units @Rs.1255 and sells 1000 units @ Rs.1260.? Show Answer

Q43) Which of the following is the duty of the trading member? Show Answer

Q44) Immediate or cancel is an order which will automatically _______ in F&O segment of NSEIL Show Answer

Q45) Which of the following is not the duty of the trading member? Show Answer

Q46) In market spread and combination order entry enable to the user to input two or three order simultaneously into the market Show Answer

Q47) Mr. A sells a futures contract of M/s. XYZ Ltd. (Lot size: 1000) expiring on 29/sep/2005 for Rs. 300. The spot price of the share is Rs. 290. The securities transaction tax thereon would be _________ Show Answer

Q48) A trader has bought 100 shares of XYZ at Rs 780 per share. He expects the price to go up but wants to protect himself if the price falls. He does not want to lose more than Rs 1000 on this long position in XYZ. What should the trader do? Show Answer

Q49) Mr. Hitesh is a trading member. One of his clients has purchased 12 contracts of March series index futures & another client as has sold 10 contracts of March series index futures. The exposure of Mr. Hitesh as trading member is _______. Show Answer

Q50) Dividends which are ______ of the market value of the underlying stock would be deemed to be extra ordinary dividends. Show Answer

Q51) ______ is at the lowest level of hierarchy of trading firm. Show Answer

Q52) The theoretical future price is considered for ______is case a futures contract is not traded during the day. Show Answer

Q53) The adjustment factor for a stock which issues a bonus in ratio A: B is ________. Show Answer

Q54) Delivery based settlement in single stock futures is provided by _____-. Show Answer

Q55) In A STOP LOSS BUY order, the limit price is _______. Show Answer

Q56) One of the eligibility criteria of a stock which can be traded in the derivative segment is that it shall be closen from amongst the top 100 stock in terms of average daily market capitalization & average daily traded value in the previous 6 months on a rolling basis. Show Answer

Q57) Mr. Kailash has bought 200 shares of Reliance Industries Ltd. at Rs.850 per share. He expects the price to go up but wants to protect himself if price falls. He does not want to lose more than Rs.4000 on this long position. What should he do? Show Answer

Q58) You have sold 1 lot of JSW steel futures for Rs.900 (lot size is 250) expecting that this share will go down. But you also want to protect yourself against any loss of more than Rs.2000. What should you do? Show Answer

Q59) Position limits have been designed to _______. Show Answer

Q60) ________ denotes the European PUT option. Show Answer