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Chapter 7 of 10
Trading, Clearing, Settlement & Risk Management
25 marks (17%)~8 hours study13 sections · 12 practice questions
Learning objectives
- Describe the trading workflow for derivatives on Indian exchanges.
- Explain the role and mechanics of the clearing house.
- Identify margin types — initial, exposure, MTM, ELM, special margin.
- Articulate the SPAN margining methodology at a high level.
- Apply position-level and broker-level risk controls.
Topics covered
01Trading workflow — order types, lot sizes, market lots
02Role of the clearing corporation
03Margin types — initial, exposure, MTM, ELM, additional
04SPAN methodology
05Mark-to-market mechanics
06Position limits — client, member, market-wide
07Settlement — physical vs cash
08Default management and the settlement guarantee fund
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A peek at what's inside Chapter 7:
13
study sections
First section: "Why this chapter matters"
20
cheat-sheet terms
Includes: Novation, Clearing corporation, Trading member...
12
practice MCQs
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