NISM-Series-XIII: Common Derivatives Exam Pattern, Syllabus & Strategy
Welcome, future derivatives experts. As you prepare for the NISM-Series-XIII: Common Derivatives Certification Examination, it is crucial to focus on the challenging topics of futures, options, and derivatives. Many students do not succeed for reasons beyond inadequate preparation or unclear concepts. They often struggle because they do not grasp the "rules of the exam," which include the exam pattern, requirements, and marking scheme.
As an educator with over 25 years of experience mentoring thousands of students, I can assure you that your success on exam day relies as much on your strategy as it does on your knowledge. Understanding the test structure, scoring system, and negative marking implications is the first vital step to developing an effective strategy.
Many students approach me after unsuccessful attempts, saying, “I knew the answers, but I ran out of time,” or “The negative marking lowered my score.” These are unavoidable mistakes.
This guide is here to give you a clear view of the NISM XIII exam structure. We will break down every component, including the number of questions, time limits, and the important negative marking rule. More importantly, I will offer actionable strategies on how to use this information to your benefit, transforming the exam pattern from a hurdle into a plan for your success.
Table of Contents
• Why Understanding the Exam Pattern is Your First Strategic Victory
• Deconstructing the NISM Series XIII Exam Pattern: A Detailed Breakdown
• The Decisive Factor: A Deep Dive into the syllabus
• Building a Winning Strategy Around the Exam Pattern and syllabus
• Aligning Your Study Plan with the Syllabus
• A Final Word of Advice: From Knowledge to Exam-Day Performance
Why Understanding the Exam Pattern is Your First Strategic Victory?
Think about a situation where a chess player is trying to win the game without knowing the rules of the game. It would be impossible for him. Just like that, writing the NISM XIII Common Derivatives exam without fully understanding its structure will set you up for anxiety and poor performance.
Knowing the exam pattern gives you an essential edge. It allows you to:
1. Manage Your Time Effectively: With 180 minutes for 150 questions, you can determine the average time per question and pace yourself, avoiding last-minute stress.
2. Develop a Question-Answering Strategy: Knowing that all questions are multiple-choice and that there is negative marking will change how you tackle each question. You will learn when to answer, when to skip, and when to take a calculated risk.
3. Reduce Exam-Day Anxiety: Familiarity boosts confidence. Understanding what to expect from the test format helps you concentrate on recalling information and solving problems rather than worrying about the unknown. Before you even pick up your study materials, understanding the exam pattern should be your top priority.
Deconstructing the NISM Series XIII Exam Pattern: A Detailed Breakdown
Let’s examine the official structure of the NISM-Series-XIII: Common Derivatives Certification Examination. This is the framework around which to build your preparation.
The 150 Question, 180 Minute Challenge
The exam consists of answering 150 MCQs in 180 minutes. This gives you approximately 72 seconds per question. This timing is intentional and it tests not only your knowledge but also your ability to recall and apply concepts quickly and accurately. You will not have the luxury of spending extra minutes pondering a single question. Speed, combined with accuracy is tested.
The Computer-Based Test (CBT) Environment
NISM certification exam is an online exam; you will have to answer the MCQ questions using a computer at a designated NISM test center in your nearby city or town. The interface is typically user-friendly. You will see one question at a time, with options to answer; you can skip, or mark it for later review. Getting comfortable with this format through a good NISM XIII demo test or practice platform is essential to avoid technical issues on the real exam day.
The Decisive Factor: A Deep Dive into the Marking Scheme
This is where strategy becomes crucial. The marking scheme for the NISM Series XIII exam has two key components that you must fully understand.
Marking Component Details
Passing Criteria 60% (You need to score at least 60 marks)
Negative Marking Yes (25% of the marks assigned to the question)
Your Target: The 60% Passing Score
To earn your certification, you need to score at least 90 out of 150. This is a clear target. You need at least 60 correct answers, assuming you have no incorrect responses lowering your score. However, because of negative marking, the math is more complicated.
The Game Changer: The 25% Negative Marking Rule
This is the most critical rule of the exam. For every incorrect answer, 0.25 marks will be deducted from your total score.
To put this into practical terms: For every 4 incorrect answers, you lose 1 full mark.
This penalty is meant to deter random guessing. You should answer only when you feel confident. Guessing on a question you are unsure about can actively reduce your final score.
Strategic Implication: Your goal is not to answer all 150 questions. Your aim should be to maximize your score by answering as many questions correctly as you can while minimizing incorrect answers. It is better to leave a question blank than to guess incorrectly.
Building a Winning Strategy around the Exam Pattern and Marking Scheme
Now that we know the rules, let us develop a strategy for success. This involves using high-quality practice tests and maintaining discipline while answering these questions.
The Unbeatable Role of Mock Tests
You can’t create an effective exam strategy by simply studying theory. You need to simulate the exam environment. This is where a good NISM XIII mock test becomes your most valuable tool.
A quality NISM series - 13 practice test helps you:
1. Master Time Management: Practicing with a 180-minute timer gives you the feel of the exam. You become skilled at using your 72 seconds per question wisely.
2. Practice with Negative Marking: A realistic NISM series - 13 model test will include the 25% negative marking. This trains you to assess your confidence level for each question and make a strategic choice to answer or skip.
3. Identify High-Risk Topics: After taking a few mock tests, you can notice patterns in the questions you go wrong. This enables you to revisit your study materials and strengthen those week areas.
A Recommended Three-Phase Answering Strategy
Smart way suggested for tackling the 150 questions in three distinct phases on exam day:
Phase 1: The Confidence Round (First 100-120 Minutes)
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Go through all 150 questions one by one.
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Answer only questions you are completely confident about. These are your sure short marks.
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If a question needs calculation or seems tricky, then mark it for review and move on to the other question. Don’t get stuck and waste time.
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The goal is to secure 40-50 correct answers in your first pass.
Phase 2: The Calculated Risk Round (Next 30-40 Minutes)
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Return to the questions you marked for review.
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Focus on those where you can confidently eliminate at least two of the four options. This boosts your guessing accuracy from 25% to 50%. This is a calculated risk which is worth taking.
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Attempt any straight forward numerical problems you skipped earlier.
Phase 3: The Final Review (Last 10-15 Minutes)
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Use this time to check the answers you have already confirmed. Look for any careless mistakes if any.
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Resist the urge to guess blindly on questions you don’t know. At this stage, it’s better to leave them blank and safeguard the score you have built and avoid negating marking.
The Syllabus of NISM series XIII- Common Derivatives
Chapters
1. Basics of Derivatives
A. Introduction to derivatives
B. History and evolution of derivatives market
C. Factors influencing the growth of derivatives market
D. History of Indian derivatives Market and available derivative products in India
E. Market participants and their roles in the derivatives markets
F. OTC and Exchange Traded Market
G. Significance and economic purpose of derivatives
H. Risks associated with financial derivatives
2. Introduction to the Underlying Markets
A. Introduction to Equity Markets and Equity Indices
B. Introduction to Currency Markets
C. Introduction to Fixed-income Securities
D. Introduction to “Interest Rate” concept and yield curve
E. Return and Risk Measures for Debt Securities (Current yield, YTM, Duration, PVBP, Convexity, etc.)
3. Introduction to Forwards and Futures
A. Introduction to Forwards and futures contracts
B. Forwards and Futures on Equities
C. Payoff Charts for Futures contract
D. Futures pricing
E. Basic differences in Commodity, Equity and Index Futures
F. Exchange Traded Currency Futures
G. Concept of Interest rate parity and pricing of currency futures
H. Interest Rate Futures
I. Delivery aspects of IRD contracts including conversion factor, invoice amount, cheapest-to-deliver bond
4. Strategies Using Futures
A. Strategies using Equity Futures
B. Strategies for hedging, speculation and arbitrage in futures market
C. Strategies Using Currency Futures
D. Strategies Using Interest Rate Futures
5. Introduction to Options – Options on Equities and Currencies
A. Basics of options
B. Concept of option premium
C. Call and Put option
D. Buying and selling (writing) options
E. European vs. American option
F. Moneyness of an option
G. Binomial and Black-Scholes option pricing models and option Greeks
H. Payoff charts for options
I. Uses of Options
6. Option Trading Strategies – Strategies using Equity Options and Currency options
A. Option spreads and their payoff charts
B. Straddle: market view and payoff charts
C. Strangle: market view and payoff charts
D. Covered Call: market view and payoff charts
E. Protective Put: market view and payoff charts
F. Collar: market view and payoff charts
G. Butterfly spread: market view and payoff charts
7. Introduction to Trading, Clearing, Settlement & Risk Management
A. Introduction to Trading Systems
B. Clearing Mechanism and computation of open positions
C. Settlement Mechanism for futures and options contracts
D. Margining and mark to market (MTM) under SPAN
E. Risk Management features, position limits and net worth requirements
F. Margin collection process of Clearing Corporations and delivery procedure
8. Legal and Regulatory Environment
A. Provisions of Securities Contract (Regulation) Act, 1956
B. Role of SEBI in regulating Derivatives market and SEBI Act, 1992
C. Important rules and regulations on trading in Derivatives market
D. Regulations in clearing & settlement and risk management
E. Outline major recommendations of the L C Gupta Committee
F. Outline major recommendations of the J R Verma Committee
G. RBI-SEBI Standing Technical Committee on Exchange Traded Currency and Interest Rate Derivatives
H. Provisions of Foreign Exchange Management Act, 1999
I. Salient features of RBI notification ‘Currency Futures (Reserve Bank) Directions, 2008
Strategic Focus:
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Over 50% of the exam covers just three main areas: Option Strategies, Forwards/Futures, and Options Basics. You need to master these chapters.
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The Clearing and Settlement chapter is also very important and heavily weighted.
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By concentrating your efforts on these important chapters, you will study smarter, not just harder.
A Final Word of Advice: From Knowledge to Exam-Day Performance
Passing the NISM-Series-XIII: Common Derivatives Certification Examination proves your knowledge and strategic skills. The exam pattern and marking scheme are not obstacles; they guide you in assessing true competence.
Grasp the structure: 150 questions, 180 minutes, 60% to pass, and a 25% penalty for wrong answers. Let these numbers shape your preparation. Don’t just read your study materials—put them into practice. Use a high-quality NISM XIII mock test to turn your knowledge into a strong score.
Your success stems directly from your preparation. Embrace the challenge, build a smart strategy, and enter the exam room with the confidence that you are ready.
Ready to put this strategy into action?
Sharpen your skills and master the exam pattern with our expertly designed NISM XIII Practice Test series at nismexams.in.
FAQs
1. How many questions are asked in the NISM 13 exam?
The NISM-Series-XIII: Common Derivatives Certification Examination consists of exactly 150 multiple-choice questions.
2. What’s the marking system, and is there negative marking?
The marking system is straightforward: each question is worth 1 mark. However, there’s a penalty for incorrect answers. The exam has a 25% negative marking, meaning for each wrong answer, 0.25 marks will be deducted from your total score. No marks are deducted for unanswered questions.
3. What is the time duration of the exam?
You will have 3 hours (180 minutes) to complete the exam. This averages out to about 83 seconds per question, making time management a vital skill for success.
4. Are questions divided by module type (Currency, Equity, IRD)?
No, the NISM Series XIII exam is a “Common Derivatives” certification. This means it tests your understanding of derivative products (forwards, futures, options) and their underlying principles generally, applicable across various asset classes. It is not divided into separate sections for currency, equity, or interest rate derivatives, which are covered in different, specialized NISM certifications.
5. What type of questions are asked - MCQs or case-based?
The NISM Series XIII exam consists only of Multiple Choice Questions (MCQs). Each question has several options, and you must select the single correct answer. There are no case-based or descriptive questions in this exam.
6. How is the NISM 13 exam graded?
The exam is graded based on a final score out of 150. To pass and receive the certification, you must achieve at least 60%. Your final score is determined by adding the marks from your correct answers and subtracting the penalty for incorrect ones (0.25 marks each).
7. When do you receive the results?
The results of the NISM Series XIII exam are announced right after you complete and submit your test at the exam center. You will receive a scorecard showing your marks and pass/fail status immediately.
8. Are there sectional cutoffs?
No, there are no sectional cutoffs in the NISM Series XIII exam. Your performance is evaluated based on your overall score across all 150 questions. You need to achieve an aggregate of 60% to pass, regardless of your performance in individual chapters or sections.
9. Is the online format the same at all test centers?
Yes, the exam is a standardized Computer-Based Test (CBT) conducted by NISM. The online interface, question format, rules, and overall exam experience are uniform across all official NISM test centers in India, ensuring fairness for all candidates.