Skip to content

NISM Certifications · NISM-Series-VIII: Equity Derivatives · Introduction to Forwards and Futures

A trader buys 2 lots of Nifty futures, lot size 75, at 22,000. At the day's settlement price of 21,940, what is the MTM position?

The trader has an MTM loss of Rs 9,000. A long position loses when price falls; the fall of 60 points multiplied by 150 units (two lots of 75) gives Rs 9,000, which is debited from the trader's margin account.

  1. AProfit of Rs 4,500
  2. BLoss of Rs 9,000Correct
  3. CLoss of Rs 4,500
  4. DProfit of Rs 9,000

Explanation

Price fell by 60 points on a long position. Quantity = 2 x 75 = 150 units. Loss = 60 x 150 = Rs 9,000. Rs 4,500 uses only one lot (missed lot count); profit is wrong sign.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Forwards and Futures shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Forwards and FuturesFree diagnostic mock

More Introduction to Forwards and Futures questions