How to Pass the NISM Series VIII: Equity Derivatives Exam

Want to Build a Career in Derivatives? The NISM Series VIII Equity Derivatives Certification Exam is your first milestone. This complete guide breaks down the syllabus, exam pattern, preparation strategy, and mock-test plan—so you can clear the exam on your first attempt with confidence.

🧾 Exam Structure at a Glance

🎯 Step-by-Step Strategy to Clear NISM Series VIII

1. Master the Workbook Thoroughly

The official NISM workbook is your primary resource. Key chapters include:

• Basics of Derivatives (Forwards, Futures, Options)
• Index and Stock Futures
• Index and Stock Options
• Option Greeks and Payoff Diagrams
• Trading Systems & Market Participants
• Clearing, Settlement & Risk Management
• Margining Systems (SPAN, MTM)
• Regulatory Environment (SEBI rules)
• Code of Conduct for Derivatives

Tip:
Create micro-notes for formulas, definitions, and payoff structures. They’re often tested.

2. Practice Numerical Questions Daily

Numericals make up ~20–30% of the paper. Common topics:

• Futures pricing
  (Cost of carry, index futures)
• Option payoffs
  (Call/put intrinsic value, break-even points)
• Greeks interpretation
• MTM calculations
• Margin calculations

Use a basic calculator / excel while practicing to simulate exam conditions.

3. Attempt High-Quality Mock Tests

Mocks help you improve:

• Calculation speed
• Concept recall
• Probability of error reduction
• Confidence in payoff diagrams
• Handling tricky SEBI regulation questions

Focus on:

• Chapter-wise quizzes
• Option payoff practice
• Full-length mock tests

Aim for 150–200 practice questions before the exam.
Mock tests available here 👉 NISM Series VIII Mocks

4. Time Management Strategy

You get 120 minutes for 100 questions.

• First pass: Solve the easy & formula-based ones (70–80 mins)
• Second pass: Handle conceptual or tricky ones (30–40 mins)
• Avoid guesswork — negative marking hurts

Pro tip:
Numerical questions are high-scoring if formulas are memorized.

5. Revise Smartly

In the last 7–10 days:

• Go through all formula lists
• Redo payoff diagrams (calls, puts, bull/bear spreads, butterflies, straddles)
• Revise margin calculation examples
• Focus on common SEBI rule-based questions
• Review all mock test mistakes

Flashcards help with definitions such as:
“Client-Level Position Limits”, “Market-Wide Position Limits”, “Initial vs Exposure Margin”, etc.

🧠 Key Topics That Frequently Appear

📅 2-Week Study Plan (Adjustable)

📝 Registration Process

1. Visit the NISM portal
   https://certifications.nism.ac.in
2. Create an account
3. Choose “Series VIII: Equity Derivatives”
4. Select date, time, and test center
5. Verify your PAN details carefully
6. Complete payment and download hall ticket

📌 After You Pass: What’s Next?

This certification is mandatory for roles such as:

• Equity derivatives dealer
• Options trader
• Brokerage RM/advisor
• Derivatives desk support
• Risk management/clearing roles

Validity: 3 years
After that, you must re-certify.

🙋‍♂️ Frequently Asked Questions (FAQs)

Q1. Is the NISM Series VIII exam difficult?

A1. Not if you study the workbook well. Most candidates pass with structured prep + mock tests.

Q2. Do I need coaching?

A2. No. The workbook + practice questions + YouTube explanations are enough. Mock tests are recommended.

Q3. Are calculators allowed?

A3. Yes, a basic non-scientific calculator is permitted.

Q4. How many hours of study are required?

A4. 20–30 focused hours are enough for most people.

Q5. How often is the exam conducted?

A5. All year round—schedule anytime via the NISM portal.

📈 Conclusion

With the right approach, consistent practice, and smart revision, clearing the NISM Series VIII Equity Derivatives Certification on your first attempt is absolutely achievable. Stick to the workbook, practice payoff diagrams, and attempt enough mocks—you’ll walk into the exam fully confident.