Free NISM Series VIII Equity Derivatives Mock Test 2026

About the NISM Series VIII Equity Derivatives exam

NISM Series VIII is the equity derivatives certification. It covers stock and index futures and options in India: how they are priced, the common trading strategies, how trades are cleared and settled, margins and risk management, and the regulations that apply. People who deal in the equity derivatives segment at a stock broker, such as approved users and sales staff, take it, as do many traders and students who want a solid base in futures and options.

Most marks come from understanding how futures and options behave: payoffs, option premiums and moneyness, basis and cost of carry, hedging and spread strategies, and margin calculations. The later chapters on regulation, taxation and investor protection are shorter and very learnable, so they are worth revising properly.

Treat each mock test as a full rehearsal: 100 questions, one sitting, two hours. Afterwards, go through every wrong answer and re-read that chapter of the NISM workbook. Our sample questions below show the level, with the correct answer under each one.

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

NISM Series VIII Equity Derivatives exam pattern

The official pattern for the NISM-Series-VIII: Equity 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 VIII Equity Derivatives syllabus

10 chapters in the official curriculum.

1. 1Basics of Derivatives
2. 2Understanding Index
3. 3Introduction to Forwards and Futures
4. 4Introduction to Options
5. 5Strategies using Equity futures and Equity options
6. 6Trading Mechanism
7. 7Introduction to Clearing and Settlement System
8. 8Legal and Regulatory Environment
9. 9Accounting and Taxation
10. 10Sales Practices and Investors Protection Services

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

15 sample NISM Series VIII Equity 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 1 · Derivative definition · Easy

   Which statement best defines a derivative?

   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.

   Report an error

2. Question 2 · Chapter 2 · Index definition · Easy

   What does a stock index primarily measure?

   1. A.The change in value of a defined group of stocks
   2. B.The accounting profit of one exchange
   3. C.The coupon rate on every government bond
   4. D.The number of trades made by one investor
   Show answer

   Correct answer: A. The change in value of a defined group of stocks

   Report an error

3. Question 3 · Chapter 4 · Call put · Easy

   What does a call option give its buyer?

   1. A.The obligation to buy the underlying at the spot price
   2. B.The obligation to sell the underlying at the futures price
   3. C.The right to buy the underlying at the strike price
   4. D.The right to sell the underlying at the strike price
   Show answer

   Correct answer: C. The right to buy the underlying at the strike price

   Report an error

4. Question 4 · Chapter 3 · Forwards · Easy

   A jeweller and a customer privately agree today on the price, purity, quantity and delivery date of gold to be exchanged after two months. What is this arrangement?

   1. A.A forward contract
   2. B.A spot transaction
   3. C.An index arbitrage
   4. D.An exchange-traded futures contract
   Show answer

   Correct answer: A. A forward contract

   Report an error

5. Question 5 · Chapter 1 · Underlying assets · Easy

   Which of the following can serve as an underlying for a derivative?

   1. A.Only a company's accounting profit
   2. B.Only a government tax rate
   3. C.Only an exchange membership deposit
   4. D.A share price, foreign-exchange rate, or commodity price
   Show answer

   Correct answer: D. A share price, foreign-exchange rate, or commodity price

   Report an error

6. Question 6 · Chapter 2 · Index definition · Medium

   Why is a stock index described as a relative value?

   1. A.It reports only absolute rupee profits of investors.
   2. B.It ignores all constituent prices.
   3. C.It is always equal to the number of constituents.
   4. D.It compares the current weighted value with a chosen base-period value.
   Show answer

   Correct answer: D. It compares the current weighted value with a chosen base-period value.

   Report an error

7. Question 7 · Chapter 3 · Forwards · Easy

   Which feature most directly makes a forward contract tailor-made?

   1. A.Its lot size is identical for every user
   2. B.It must expire on an exchange-selected day
   3. C.Its terms can be negotiated to suit both parties
   4. D.Its price is fixed by a clearing corporation
   Show answer

   Correct answer: C. Its terms can be negotiated to suit both parties

   Report an error

8. Question 8 · Chapter 1 · Risk transfer · Medium

   A wheat farmer agrees today to sell the harvest three months later at a fixed price. What risk-management objective is primarily being pursued?

   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

   Report an error

9. Question 9 · Chapter 2 · Base value · Easy

   What is the purpose of assigning an index a base value such as 100 or 1,000?

   1. A.To determine the face value of every constituent share
   2. B.To guarantee the future return of the index
   3. C.To provide a reference level from which later changes can be measured
   4. D.To cap the index so it can never rise further
   Show answer

   Correct answer: C. To provide a reference level from which later changes can be measured

   Report an error

10. Question 10 · Chapter 3 · Forwards · Medium

    At inception of a typical forward contract, what normally changes hands between the buyer and seller?

    1. A.Daily variation margin
    2. B.The full contract value
    3. C.Only the underlying asset
    4. D.Usually neither money nor the underlying asset
    Show answer

    Correct answer: D. Usually neither money nor the underlying asset

    Report an error

11. Question 11 · Chapter 1 · Risk transfer · Medium

    How does locking an asset price through a derivative generally help a risk-averse business?

    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.

    Report an error

12. Question 12 · Chapter 2 · Index interpretation · Medium

    When comparing an index across time, which measure is usually more informative than its raw numerical level?

    1. A.The age of the oldest constituent's auditor
    2. B.Its percentage change
    3. C.The number of digits in the index
    4. D.The face value of the exchange's shares
    Show answer

    Correct answer: B. Its percentage change

    Report an error

13. Question 13 · Chapter 3 · Forward payoff · Medium

    A long forward holder agreed to buy at Rs. 840. At maturity the spot price is Rs. 875. What economic position does the holder have?

    1. A.A gain of Rs. 35 per unit
    2. B.A loss of Rs. 35 per unit
    3. C.No gain or loss because it is OTC
    4. D.A gain of Rs. 875 per unit
    Show answer

    Correct answer: A. A gain of Rs. 35 per unit

    Report an error

14. Question 14 · Chapter 1 · Legal status · Medium

    Under the Securities Contracts (Regulation) Act framework described by BSE, derivatives are treated as what?

    1. A.Securities
    2. B.Bank deposits
    3. C.Insurance contracts only
    4. D.Physical warehouse receipts only
    Show answer

    Correct answer: A. Securities

    Report an error

15. Question 15 · Chapter 2 · Index quality · Easy

    Which combination best describes a good broad-market stock index?

    1. A.Representative, diversified, and liquid
    2. B.Concentrated, illiquid, and privately valued
    3. C.Unrelated to typical portfolios and rarely updated
    4. D.Composed only of the highest-priced share
    Show answer

    Correct answer: A. Representative, diversified, and liquid

    Report an error

Frequently asked questions

How many questions are in the NISM Series VIII exam?

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

Is there negative marking in NISM Series VIII?

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.

How long is the NISM Series VIII certificate valid?

NISM's page lists a validity of 3 years. Check the official page for renewal options before your certificate lapses.

Are your NISM Series VIII mock tests the same length as the real exam?

Yes. Each of our tests has 100 questions with a 120-minute timer, matching the pattern NISM publishes.

Do your answers come with explanations?

Not yet. You get your score and the correct answer for each question. Use the NISM workbook chapter for anything you get wrong.

Are these NISM Series VIII Equity 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.

Keep studying

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

More NISM mock tests

• I
  NISM Series I Currency Derivatives10 free tests
• IV
  NISM Series IV Interest Rate Derivatives10 free tests
• XIII
  NISM Series XIII Common Derivatives10 free tests