Free NISM Series I Currency Derivatives Mock Test 2026

About the NISM Series I Currency Derivatives exam

NISM Series I tests whether you understand exchange-traded currency derivatives in India: how the foreign exchange market works, how currency futures and options are priced and traded, and how trades are cleared, settled and margined. It is the certification for people who deal in the currency derivatives segment of a stock broker, such as approved users and sales staff, and it is also taken by students and professionals who want a recognised grounding in forex derivatives.

Expect a mix of concept questions (what moves an exchange rate, how a forward premium is quoted) and short calculations (cross rates, two-way quotes, contract values, profit and loss on a futures or options position). The regulatory and investor-protection units are short but come up reliably, so don't skip them.

Use the mock tests here the way you would use the real exam: sit one in a single go, under the time limit, then look at every question you got wrong and go back to that unit of the NISM workbook. Repeat with a fresh test. The sample questions below show the style; each comes with its correct answer.

Conducted by National Institute of Securities Markets (NISM). Official website

NISM Series I Currency Derivatives exam pattern

The official pattern for the NISM-Series-I: Currency Derivatives Certification Examination, as published by National Institute of Securities Markets (NISM).

Source: NISM (verified Oct 2026) . Exam bodies revise patterns; confirm on the official page before you book.

NISM Series I Currency Derivatives syllabus

10 units in the official curriculum.

1. 1Introduction to Currency Markets
2. 2Foreign Exchange Derivatives
3. 3Exchange Traded Currency Futures
4. 4Exchange Traded Currency Options
5. 5Strategies Using Exchange Traded Currency Derivatives
6. 6Trading Mechanism in Exchange Traded Currency Derivatives
7. 7Clearing, Settlement and Risk Management in Exchange Traded Currency Derivatives
8. 8Regulatory Framework for Exchange Traded Currency Derivatives
9. 9Accounting and Taxation
10. 10Codes of Conduct and Investor Protection Measures

NISM's curriculum page lists the units but does not publish unit-wise weightage. Source: NISM (verified Oct 2026)

15 sample NISM Series I Currency Derivatives questions with answers

Taken from the question bank our tests use. Try each one, then open “Show answer”. Our questions are drafted with AI and reviewed by people against the official syllabus; how we make questions.

1. Question 1 · Chapter 7 · SPAN · Medium

   In a Series I question focused on currency-market microstructure, focusing on chapter 7 span, a portfolio contains a long call and a short call at different strikes. How should SPAN assess it? Answer as a currency futures or currency options market participant would.

   1. A.As a combined option portfolio across scenarios, not as unrelated positions
   2. B.Margin only the profitable leg
   3. C.Ignore the long call completely
   4. D.Use only the underlying's face value
   Show answer

   Correct answer: A. As a combined option portfolio across scenarios, not as unrelated positions

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2. Question 2 · Chapter 1 · Two way quotes · Medium

   In a Series I currency-derivatives case for an importer hedging USDINR exposure, focusing on chapter 1 two way quotes, for a Jaipur gemstone exporter, a dealer quotes USDINR at 70/70.02. At which rate can the customer sell USD and receive INR? Choose the answer that best fits the currency-derivatives exam context.

   1. A.70.02
   2. B.69.98
   3. C.70
   4. D.70.04
   Show answer

   Correct answer: C. 70

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3. Question 3 · Chapter 2 · Derivative definition · Easy

   In a currency options scenario involving USDINR settlement and margining, focusing on chapter 2 derivative definition, which statement best defines a derivative? Choose the answer that best fits the currency-derivatives exam context.

   1. A.Its value is derived from an underlying asset, index, or reference variable.
   2. B.It is always an ownership interest in a company.
   3. C.Its return is fixed by the tax authority.
   4. D.It can be issued only against physical commodities.
   Show answer

   Correct answer: A. Its value is derived from an underlying asset, index, or reference variable.

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4. Question 4 · Chapter 3 · Positions · Easy

   In an Indian exchange-traded currency derivatives compliance case, focusing on chapter 3 positions, a trader who buys a futures contract is said to be: Choose the answer that best fits the currency-derivatives exam context.

   1. A.Long futures
   2. B.Short futures
   3. C.Long spot only
   4. D.Flat by definition
   Show answer

   Correct answer: A. Long futures

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5. Question 5 · Chapter 1 · Two way quotes · Medium

   For a treasury dealer preparing an exchange-traded currency futures hedge, focusing on chapter 1 two way quotes, for a Kochi spice importer, a dealer quotes EURINR at 70.37/70.39. At which rate can the customer buy EUR by paying INR? Apply the Series I convention while selecting the correct response.

   1. A.70.41
   2. B.70.37
   3. C.70.39
   4. D.70.35
   Show answer

   Correct answer: C. 70.39

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6. Question 6 · Chapter 2 · Risk transfer · Medium

   For a dealer comparing spot, forward, and currency futures markets, focusing on chapter 2 risk transfer, a wheat farmer agrees today to sell the harvest three months later at a fixed price. What risk-management objective is primarily being pursued? Apply the Series I convention while selecting the correct response.

   1. A.Increasing exposure to daily wheat-price volatility
   2. B.Eliminating the physical risk of crop failure
   3. C.Reducing exposure to a fall in the future wheat price
   4. D.Obtaining voting rights in the buyer's company
   Show answer

   Correct answer: C. Reducing exposure to a fall in the future wheat price

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7. Question 7 · Chapter 3 · Positions · Easy

   For a client with receivables or payables in foreign currency, focusing on chapter 3 positions, a trader who sells a futures contract without an existing position is said to be: Apply the Series I convention while selecting the correct response.

   1. A.Short futures
   2. B.Long basis
   3. C.Closed out
   4. D.Long futures
   Show answer

   Correct answer: A. Short futures

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8. Question 8 · Chapter 1 · Two way quotes · Medium

   During a Series I mock exam case on INR-pair currency contracts, focusing on chapter 1 two way quotes, for a Pune software exporter, a dealer quotes GBPINR at 70.74/70.76. At which rate can the customer sell GBP and receive INR? Answer as a currency futures or currency options market participant would.

   1. A.70.72
   2. B.70.78
   3. C.70.74
   4. D.70.76
   Show answer

   Correct answer: C. 70.74

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9. Question 9 · Chapter 2 · Risk transfer · Medium

   In an Indian exchange-traded currency derivatives compliance case, focusing on chapter 2 risk transfer, how does locking an asset price through a derivative generally help a risk-averse business? Answer as a currency futures or currency options market participant would.

   1. A.It converts the business into an exchange member.
   2. B.It reduces the effect of price fluctuations on profitability and cash flow.
   3. C.It guarantees that the underlying price will stop fluctuating.
   4. D.It removes every operational risk faced by the business.
   Show answer

   Correct answer: B. It reduces the effect of price fluctuations on profitability and cash flow.

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10. Question 10 · Chapter 3 · Margin · Medium

    In a Series I question focused on currency-market microstructure, focusing on chapter 3 margin, why are margins collected from both buyers and sellers of futures? Answer as a currency futures or currency options market participant would.

    1. A.Only sellers receive MTM
    2. B.Margins determine the futures price
    3. C.Both have obligations that can generate losses
    4. D.Only buyers may default
    Show answer

    Correct answer: C. Both have obligations that can generate losses

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11. Question 11 · Chapter 1 · Two way quotes · Medium

    For an exporter reviewing currency-risk management under NISM Series I, focusing on chapter 1 two way quotes, for a Surat textile exporter, a dealer quotes EURUSD at 71.11/71.13. At which rate can the customer buy EUR by paying USD? Use the Indian exchange-traded currency derivatives framework.

    1. A.71.15
    2. B.71.09
    3. C.71.13
    4. D.71.11
    Show answer

    Correct answer: C. 71.13

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12. Question 12 · Chapter 2 · Legal definition · Hard

    For a client with receivables or payables in foreign currency, focusing on chapter 2 legal definition, which contract falls within the SCRA description of a derivative cited in the BSE material? Use the Indian exchange-traded currency derivatives framework.

    1. A.A contract whose value is unrelated to any security or reference price
    2. B.A fixed salary agreement between employer and employee
    3. C.A cash purchase settled immediately with no derived value
    4. D.A contract deriving value from the price or price index of underlying securities
    Show answer

    Correct answer: D. A contract deriving value from the price or price index of underlying securities

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13. Question 13 · Chapter 3 · Forward vs futures · Medium

    For a risk manager using listed currency derivatives for FX exposure, focusing on chapter 3 forward vs futures, which is a limitation of standardized futures? Use the Indian exchange-traded currency derivatives framework.

    1. A.They always carry greater counterparty risk than forwards
    2. B.They cannot be traded through an exchange
    3. C.They may not exactly match a user's desired quantity or maturity
    4. D.Their prices are hidden from the market
    Show answer

    Correct answer: C. They may not exactly match a user's desired quantity or maturity

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14. Question 14 · Chapter 1 · Two way quotes · Medium

    In a currency options scenario involving USDINR settlement and margining, focusing on chapter 1 two way quotes, for a Chennai machinery importer, a dealer quotes GBPUSD at 71.48/71.5. At which rate can the customer sell GBP and receive USD? Select the most accurate currency-market interpretation.

    1. A.71.5
    2. B.71.46
    3. C.71.48
    4. D.71.52
    Show answer

    Correct answer: C. 71.48

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15. Question 15 · Chapter 2 · Growth drivers · Easy

    In a Series I question focused on currency-market microstructure, focusing on chapter 2 growth drivers, which development helped drive global growth in financial derivatives? Select the most accurate currency-market interpretation.

    1. A.Greater volatility in financial asset prices
    2. B.Permanent elimination of price changes
    3. C.A decline in international market integration
    4. D.A ban on risk-management innovation
    Show answer

    Correct answer: A. Greater volatility in financial asset prices

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Frequently asked questions

How many questions are in the NISM Series I exam and how long is it?

According to NISM, the exam has 100 questions of 1 mark each and must be completed in 2 hours. The pass mark is 60%.

Is there negative marking in NISM Series I?

There is negative marking of 25% of the marks assigned to a question, so a wrong answer costs a quarter mark. Leaving a question blank costs nothing.

Who needs the NISM Series I certificate?

It is meant for people working in the currency derivatives segment of a trading member (for example approved users and sales staff), and it is open to anyone else who wants the certification. Check NISM's page for the current eligibility notes.

Do your answers come with explanations?

Not yet. After a test you see your score and the correct answer for every question. For the reasoning behind an answer, use the relevant unit of the official NISM workbook.

Are these NISM Series I Currency Derivatives mock tests really free?

Yes. All 10 tests can be attempted free, with no card and no locked content. Each has 100 questions and a 120-minute timer. The site is kept free by advertising; ads are labelled and never appear inside a test.

Can I retake a test, and do I need an account?

You can retake any test as often as you like. A free account (name and email only) saves your answers, scores and attempt history.

I think an answer is wrong. What should I do?

Use the "Report an error" link under the question, or email support@freetestseries.com with the question ID. We review reports within 2 working days and fix confirmed mistakes.

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• NISM sample questions (interactive)
• NISM Series I exam guide
• How we make and check our questions

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