Take the free NISM Series I: Currency Derivatives Mock Test with 100 questions, instant results, and detailed solutions. No login required. This practice test matches the official NISM CD exam pattern with 120 minutes duration, 60% passing marks, and 25% negative marking. Start your test now and download your scorecard immediately after completion.
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✓ 100 Questions | ✓ Instant Results | ✓ Free Solutions PDF
NISM Currency Derivatives Mock Test Features
This mock test gives you real exam experience with 100 multiple choice questions covering all 10 syllabus units. You practice under actual time pressure (120 minutes), face the same negative marking system (0.25 deduction per wrong answer), and need 60 marks to pass.
| Mock Test Specification | What You Get |
|---|---|
| Total Questions | 100 MCQs (same as actual NISM exam) |
| Time Allowed | 120 Minutes (2 Hours) |
| Passing Score | 60 out of 100 marks (60%) |
| Negative Marking | Yes, 0.25 marks deducted per wrong answer |
| Access Type | No login, no registration, instant access |
| Cost | Completely Free |
| Results | Instant scorecard with right/wrong breakdown |
| Solutions | Detailed explanations for all 100 questions |
| Download | PDF scorecard and solutions available |
| Attempts | Unlimited retakes allowed |
How This Mock Test Helps You Pass NISM Currency Derivatives Exam
The biggest mistake candidates make is studying theory without testing themselves under exam conditions. This mock test fixes that problem by simulating the actual NISM CD examination environment.
Practice Questions from All 10 Units
Each unit gets proportional question coverage matching official weightage. You’ll face questions on currency markets introduction, foreign exchange derivatives, currency futures contracts, currency options, trading strategies, clearing and settlement, regulatory framework, accounting standards, taxation rules, and investor protection measures.
Experience Negative Marking Before Real Exam
Every wrong answer costs you 0.25 marks. The mock test trains you to skip questions when uncertain instead of guessing blindly. Candidates who understand negative marking strategy score 10-15% higher than those who attempt every question.
Learn from Detailed Solutions
After test submission, you get step-by-step explanations for all questions. Wrong answers come with reasons why they’re incorrect. Calculation-based questions show complete working. Conceptual questions explain the underlying principle clearly.
Identify Weak Topics Fast
Your scorecard breaks down performance by unit. If you score 8/10 in Unit 3 (Currency Futures) but only 4/10 in Unit 7 (Currency Options), you know exactly where to focus revision efforts. No more wasting time on topics you already understand.
What Questions Appear in NISM Currency Derivatives Mock Test
The test covers all exam topics with questions matching actual NISM difficulty levels and question patterns.
Unit 1: Introduction to Currency Markets
Questions test base currency vs quotation currency, spot rate calculations, forward premium/discount, cross rate computations, FBIL reference rates, value dates (Spot, Tom, Today), and OTC forward market features. Expect 8-10 questions from this unit.
Sample Question Type: “If USDINR spot rate is 82.50 and 3-month forward rate is 83.00, calculate the annualized forward premium percentage.”
Unit 2: Foreign Exchange Derivatives
This section covers derivative definitions, types (forwards, futures, options, swaps), market participants (hedgers, speculators, arbitrageurs), economic functions, and differences between OTC vs exchange-traded products. Around 8-10 questions appear here.
Sample Question Type: “An importer expecting to pay $1 million in 3 months wants to lock the exchange rate. Which derivative instrument provides this protection with zero upfront cost?”
Unit 3: Exchange Traded Currency Futures
Questions focus on contract specifications (INR pairs like USDINR, EURINR, GBPINR, JPYINR), contract size ($1,000 for USDINR), tick size (0.0025 or 0.25 paisa), expiry cycles, settlement procedures, futures pricing formula using interest rate parity, and payoff diagram construction. This unit carries maximum weightage with 12-15 questions.
Sample Question Type: “A trader buys 10 lots of USDINR futures at 82.50. Contract moves to 82.75 at expiry. Calculate total profit (contract size: $1,000).”
Unit 4: Exchange Traded Currency Options
Option questions cover call and put basics, strike price, premium, moneyness (ITM/ATM/OTM), intrinsic value, time value, option Greeks (Delta, Gamma, Theta, Vega, Rho), American vs European options, and Black-Scholes pricing factors. Expect 12-15 questions here.
Sample Question Type: “USDINR spot = 82.50. A call option with strike 82.00 trades at premium ₹0.60. What is the intrinsic value per dollar?”
Unit 5: Strategies Using Currency Futures and Options
Questions present hedging scenarios for importers/exporters, speculative positions, arbitrage opportunities, bull spreads, bear spreads, straddles, strangles, covered calls, and protective puts. Around 10-12 questions test strategy application.
Sample Question Type: “An exporter receives $500,000 in 2 months. Fearing rupee appreciation, which futures position should they take?”
Unit 6: Trading in Currency Futures
This unit examines order types (market, limit, stop-loss), order matching rules, trading system architecture, trader workstation, price discovery, circuit filters, and transaction costs (brokerage, exchange fees, SEBI charges, stamp duty, GST). Approximately 8-10 questions appear.
Sample Question Type: “Calculate total transaction cost for buying 100 lots of USDINR futures worth ₹1 crore (include all charges).”
Unit 7: Clearing, Settlement and Risk Management
Questions cover clearing corporation functions, clearing members, Mark-to-Market (MTM) calculations, initial margin, SPAN margin, exposure margin, delivery procedures, and position limits. This section has 8-10 questions with many calculation problems.
Sample Question Type: “A trader holds 50 lots long USDINR futures. Entry price: 82.40. Today’s settlement: 82.60. Calculate MTM profit.”
Unit 8: Accounting and Taxation
Accounting questions test mark-to-market treatment, hedge accounting, disclosure requirements, and financial statement presentation. Taxation questions cover speculative vs non-speculative income classification, TDS on brokerage, and tax treatment for different participant types. Around 6-8 questions come from this unit.
Sample Question Type: “A corporate hedges genuine import exposure using currency futures. How should gains/losses be treated for tax purposes?”
Unit 9: Regulatory Framework
Regulatory questions examine SEBI regulations, RBI guidelines, SCRA provisions, FEMA requirements, participant eligibility, position limits for various entities (banks, FPIs, corporates, individuals), and RBI-SEBI Standing Technical Committee role. This unit generates 10-12 questions.
Sample Question Type: “What is the maximum currency derivatives position limit for Foreign Portfolio Investors per exchange?”
Unit 10: Codes of Conduct and Investor Protection
Questions focus on broker code of conduct, KYC requirements, margin collection norms, investor grievance redressal, Investor Protection Fund, power of attorney restrictions, and disclosure obligations. Expect 6-8 questions here.
Sample Question Type: “An investor complains about unauthorized trading by their broker. Which authority handles this grievance?”
NISM Currency Derivatives Exam Pattern You Must Know
The official NISM Series I: Currency Derivatives Certification Examination follows this exact structure that our mock test replicates.
| Exam Parameter | Official Specification |
|---|---|
| Examination Mode | Computer-based test (CBT) at authorized centers |
| Total Questions | 100 Multiple Choice Questions (MCQs) |
| Marks per Question | 1 mark each |
| Total Marks | 100 marks |
| Exam Duration | 2 hours (120 minutes) |
| Passing Percentage | 60% (60 marks minimum) |
| Negative Marking | 0.25 marks deducted per wrong answer |
| Question Language | English only |
| Calculator | On-screen calculator provided |
| Result Declaration | Immediately after test submission |
| Certificate Validity | 3 years from exam passing date |
| Exam Fee | ₹1,000 to ₹1,500 (varies by test partner) |
✓ Start Test in 5 Seconds | ✓ No Email Required | ✓ Works on Mobile
Who Must Take NISM Series I Currency Derivatives Certification
SEBI and RBI make this certification mandatory for specific roles in the currency derivatives market.
Trading Member Personnel
All approved users, dealers, and sales personnel at trading members of NSE, BSE, and MSEI currency derivatives segments need valid NISM Series I CD certification. You cannot get trading terminal access without this credential.
Banks and Financial Institutions
Treasury personnel dealing with currency futures and options in banks, NBFCs, and cooperative banks require this certification. Even if you handle only client transactions (not proprietary trading), certification is mandatory.
Corporate Treasury Professionals
Companies managing foreign exchange exposure through currency derivatives prefer treasury managers with NISM CD certification. While not legally mandatory for corporates, many organizations make it a hiring requirement.
Career Advancement
Certification opens positions in forex dealing desks, currency research teams, risk management departments, and compliance functions across financial services firms.
Common Questions Students Face in NISM Currency Derivatives Exam
These question types trip up 70% of first-time test takers. The mock test prepares you for all of them.
Cross Rate Calculation Questions
Given USDINR and EURUSD rates, calculate EURINR. These questions confuse students about which rate to multiply vs divide. The mock test includes 5-6 such problems with detailed solution steps showing exact methodology.
Futures Pricing Using Interest Rate Parity
Formula: F = S × [(1 + Rd × t/365) / (1 + Rf × t/365)]. Questions give spot rate, domestic interest rate, foreign interest rate, and time period. You calculate theoretical futures price or identify arbitrage. Practice these in the mock test.
Option Payoff Diagram Construction
Draw profit/loss graphs for long call, short call, long put, short put positions at various spot prices at expiry. Many candidates draw incorrect axes or forget to subtract premium. Mock test solutions show correct diagram construction.
MTM Profit/Loss Calculations
Daily Mark-to-Market settlement problems require multiplying price change by contract size and number of lots. Students often forget contract multipliers (USDINR: $1,000 per lot). Practice prevents these errors.
Position Limit Questions
Who can take how much position? Banks: 15% of Tier I capital. Corporates: up to underlying exposure. FPIs: $100 million per exchange. Retail: $10 million gross position. These numbers appear repeatedly in exams.
How to Score 70%+ in NISM Currency Derivatives Exam
Passing at 60% is not enough. Target 70-75% to ensure negative marking doesn’t pull you below the threshold.
Master Calculation-Heavy Topics First
Futures pricing, cross rates, MTM calculations, option Greeks, and margin computations carry 30-35 marks. These questions have definite right answers (unlike conceptual questions where distractors confuse you). Perfect these for guaranteed marks.
Create Formula Cheat Sheet
Write down all formulas on one page: interest rate parity, cross rate calculations, forward premium/discount, option intrinsic value, Delta/Gamma/Theta definitions, and margin requirements. Review this sheet daily during the last week.
Practice Negative Marking Strategy
If you’re 100% sure: mark answer. And If you can eliminate 2-3 wrong options: mark answer. If completely guessing between 3-4 options: skip question. This strategy alone improves scores by 5-8 marks.
Use Elimination Technique
Most MCQs have 1-2 obviously wrong options. Eliminate those first. Choose between remaining 2-3 options using logic. Even 50-50 guessing after eliminating two options gives better odds than random selection.
Answer Fast Questions First
Theory-based questions on regulations, definitions, and concepts take 20-30 seconds. Calculation questions need 1-2 minutes. Scan the entire paper, answer quick questions first, then tackle calculations. Don’t get stuck on one tough question.
Take 3-4 Full Mock Tests
One practice test is not enough. Take this mock test 3-4 times (questions may vary) to build exam stamina. Two hours of continuous focus needs practice. Your 4th attempt will be significantly faster than your 1st.
What Happens After You Pass NISM Currency Derivatives Exam
Certificate issuance and career opportunities begin immediately after results.
Certificate Collection Process
Candidates providing PAN during registration receive the NISM Series I: Currency Derivatives Certificate within 15 days by courier. Those using other ID proofs get only a mark sheet. Submit PAN later to the test center to receive the certificate.
Certificate Validity Period
Your certificate remains valid for 3 years from the exam passing date. Before expiry, either retake the exam or complete NISM’s Continuing Professional Education (CPE) program to renew certification.
Job Opportunities
Certified professionals work as currency derivatives dealers (salary: ₹4-8 lakh annually for freshers), forex traders (₹6-12 lakh), treasury executives (₹5-10 lakh), risk managers (₹7-15 lakh), and compliance officers (₹6-12 lakh) in banks, brokerages, and corporate treasuries.
Further Certifications
After NISM CD, consider NISM Series VIII (Equity Derivatives), NISM Series XV (Research Analyst), or specialized treasury certifications like AMFI, FRM, or CFA for career progression.
Mistakes That Cost You Marks in NISM Currency Derivatives Mock Test
Learn from these common errors before the actual exam.
Not Reading Questions Carefully
Questions say “Which statement is INCORRECT” but students mark the correct statement. Or question asks “loss” but students calculate “profit.” Underline keywords like NOT, EXCEPT, INCORRECT, MAXIMUM, MINIMUM before solving.
Confusing Base and Quotation Currency
USDINR = 82.50 means ₹82.50 per $1 (indirect quotation). Many students flip this. When calculating appreciation/depreciation, confusion leads to wrong answers. Practice currency quotation conventions.
Forgetting Negative Marking
Attempting all 100 questions feels good, but 15 wrong answers cost 3.75 marks. If you correctly answer 60 questions, attempt 15 uncertain ones (getting 10 wrong), your score becomes 60 + 5 – 2.5 = 62.5 marks. Safer to attempt only 70 questions with confidence.
Misremembering Contract Specifications
USDINR contract size is $1,000, not ₹1,000. JPYINR contract is ¥100,000, not ¥1,000. Using wrong multipliers in calculations gives wrong answers. Memorize exact contract specs for all four INR pairs.
Time Mismanagement
Spending 5 minutes on one tough question leaves only 45 seconds per question for the remaining 85. Skip difficult questions initially. Complete easy ones. Return to tough questions if time permits.
Free Resources for NISM Currency Derivatives Preparation
Combine this mock test with these free study materials for complete preparation.
NISM Official Workbook
Download the NISM Series I: Currency Derivatives Workbook PDF free from NISM’s official website. This 200-page document covers all syllabus topics with chapter-end practice questions. Study this before attempting mock tests.
RBI and SEBI Guidelines
Read RBI’s Master Direction on participation in currency derivatives and SEBI’s operational guidelines for exchanges. These documents clarify position limits, eligibility criteria, and reporting requirements that appear in exam questions.
NSE and BSE Study Materials
Both exchanges publish free guides on currency derivatives trading. NSE’s currency derivatives FAQ section answers 100+ common questions. BSE provides contract specifications and margin calculation examples.
YouTube Video Lectures
Several finance educators post free NISM CD preparation videos explaining complex topics like option Greeks, interest rate parity, and cross rate calculations with visual examples.
Practice Questions on Sarkari Exam
Beyond this mock test, Sarkari Exam offers additional practice questions, previous year papers (unofficial), and topic-wise question banks for focused revision.
Frequently Asked Questions About NISM Currency Derivatives Mock Test
Yes, 100% free. No payment, no subscription, no hidden charges. Take the test unlimited times without spending anything.
It matches official exam structure (100 questions, 120 minutes, 60% pass, 0.25 negative marking) and covers identical syllabus topics with similar difficulty levels.
Minimum 60 out of 100 marks (60%). With negative marking, you need to answer 70-75 questions correctly to safely cross this threshold.
3 years from exam passing date. Renewal requires either retaking the exam or completing NISM’s CPE program before expiry.
All 10 official syllabus units: Introduction to Currency Markets, Foreign Exchange Derivatives, Currency Futures, Currency Options, Trading Strategies, Trading Mechanisms, Clearing and Settlement, Accounting and Taxation, Regulatory Framework, and Investor Protection.
No. Basic arithmetic (addition, subtraction, multiplication, division, percentages) and simple formula application suffice. No calculus or advanced statistics required.
Start Your NISM Currency Derivatives Exam Preparation Today
Stop delaying. Take this free mock test now to assess your current preparation level. Identify weak areas. Focus your study efforts. Practice under timed conditions. Build confidence before the actual exam.
Thousands of candidates pass NISM Series I: Currency Derivatives Certification every year. Many fail not because they lack knowledge, but because they skip practice tests. Don’t make that mistake.
This mock test gives you risk-free practice that costs nothing but delivers everything: exam simulation, performance analysis, detailed solutions, and unlimited retakes. You’ve got nothing to lose and a successful certification to gain.
After scoring consistently above 70% in this mock test, register for the official NISM exam at authorized test centers. Walk into that exam room knowing exactly what to expect. Answer confidently. Skip strategically. Manage time efficiently. Pass with strong marks.
Your NISM Currency Derivatives certification unlocks career opportunities in banking, forex trading, corporate treasury, and financial services. It demonstrates expertise in a specialized, high-demand skill. Employers recognize and value this credential.
Visit Sarkari Exam regularly for more free mock tests across banking, insurance, NISM, NCFM, and other financial market certifications. Get job notifications, admit card updates, result alerts, and answer key downloads all in one place.
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