NISM Series I Syllabus: Currency Derivatives
All 10 chapters of the Currency Derivatives workbook, with the weightage each carries in the exam.
The NISM Series I workbook (often searched as NISM Series 1) has 10 chapters, which the syllabus outline calls units. Two set the scene: how currency markets work and what foreign exchange derivatives are. Two are the core products: exchange-traded currency futures and currency options. One shows how hedgers, speculators and arbitrageurs use them. Two cover the exchange's machinery: trading, then clearing, settlement and risk management. The last three are shorter: regulation, accounting and taxation, and the code of conduct with investor protection.
Series I has a published weightage for every chapter. The paper is 100 questions of 1 mark each, so a chapter's weightage is also the number of marks it is worth.
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Chapter weightage
From the workbook's own syllabus outline. Weightage is a percentage of the 100-mark paper.
| Chapter | Weightage (marks) |
|---|---|
| 1. Introduction to Currency Markets | 10 |
| 2. Foreign Exchange Derivatives | 5 |
| 3. Exchange Traded Currency Futures | 20 |
| 4. Exchange Traded Currency Options | 20 |
| 5. Strategies Using Exchange Traded Currency Derivatives | 10 |
| 6. Trading Mechanism in Exchange Traded Currency Derivatives | 10 |
| 7. Clearing, Settlement and Risk Management in Exchange Traded Currency Derivatives | 10 |
| 8. Regulatory Framework for Exchange Traded Currency Derivatives | 5 |
| 9. Accounting and Taxation | 5 |
| 10. Code of Conduct and Investor Protection Measures | 5 |
| Total | 100 |
Where the marks sit
Futures and options, chapters 3 and 4, carry 40 of the 100 marks between them. Chapters 1, 5, 6 and 7 carry 10 each. The four 5-mark chapters (2, 8, 9 and 10) add up to 20. The pass mark is 60, so futures and options alone cannot get you through: you need marks from across the paper.
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What each chapter covers
Sub-headings as the March 2026 workbook lists them, grouped.
- 1. Introduction to Currency Markets
- A brief history of foreign exchange markets, the major currencies and currency pairs, the basics of currency markets and their peculiarities in India, exchange rate arithmetic and cross rates, and how economic factors and indicators move currency prices.
- 2. Foreign Exchange Derivatives
- What a derivative is and its key economic functions, the main derivative products, growth drivers, the participants in currency derivatives, exchange-traded versus OTC derivatives, and why exchange-traded currency derivatives were introduced in India.
- 3. Exchange Traded Currency Futures
- The definition of a currency future, pay-off charts, contract specification and contract value, the advantages and limitations of futures compared with forwards, and interest rate parity as the basis for pricing currency futures.
- 4. Exchange Traded Currency Options
- Option basics, how options differ from futures, option styles, moneyness, option pricing basics and the option Greeks, pricing methodology, implied volatility, pay-off diagrams, the contract specification of exchange-traded currency options, and how they compare with OTC currency options.
- 5. Strategies Using Exchange Traded Currency Derivatives
- The roles of hedgers, speculators and arbitrageurs, hedging with exchange-traded currency derivatives, option trading strategies with their pay-offs, spread trading, and the limitations of exchange-traded contracts for hedgers.
- 6. Trading Mechanism in Exchange Traded Currency Derivatives
- The entities in the trading system, the exchange trading system, order management, risk management and order routing, the price limit circuit filter, and trading costs.
- 7. Clearing, Settlement and Risk Management in Exchange Traded Currency Derivatives
- The clearing and settlement mechanism and the entities in it, interoperability of clearing corporations, determining settlement obligations, position limits, settlement and funds settlement, risk management and margin collection by the clearing corporation, the Core Settlement Guarantee Fund, and the Cyber Security and Cyber Resilience Framework (CSCRF) for stock brokers and depository participants.
- 8. Regulatory Framework for Exchange Traded Currency Derivatives
- The Securities Contracts (Regulation) Act, 1956, the RBI-SEBI Standing Technical Committee on exchange traded currency and interest rate derivatives, the Foreign Exchange Management Act, 1999, SEBI and RBI regulations and guidelines, rules on which entities may participate, and the eligibility criteria for members.
- 9. Accounting and Taxation
- Accounting guidelines and disclosure requirements for currency derivatives, and the taxation of exchange-traded currency derivatives.
- 10. Code of Conduct and Investor Protection Measures
- SEBI's code of conduct for brokers, investor grievance redressal and arbitration, handling investor claims when a trading or clearing member defaults, the Investor Protection Fund, the Power of Attorney a client may give a stock broker or DP, and risk disclosure to clients and KYC.
What kind of paper this is
NISM's stated aim for Series I is a common minimum knowledge benchmark for people working in the currency derivatives segment. The workbook's examination objectives are three: know the basics of currency markets and exchange-traded currency derivatives, understand the trading, clearing and settlement mechanisms and the basic strategies that use currency futures and options, and know the regulatory environment these markets operate in.
This is not a recall-only paper. Chapters 1, 3, 4 and 5 involve working with numbers: cross rates, futures pricing through interest rate parity, option pay-offs and strategy outcomes. The workbook itself notes that test centre workstations carry Microsoft Excel or LibreOffice and advises candidates to be comfortable with both for numericals.
Check the workbook version
This page follows the March 2026 workbook, which NISM says to use for the Series I exam taken on or after April 20, 2026. NISM revises workbooks when rules change, and the exam follows the current version. Confirm the version on NISM's Series I page before you start.
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