Reviewed by: R. Saikiran. This guide is written for candidates who want a quick but practical revision note before attempting mock tests.
Margins
Margins reduce default risk by requiring participants to maintain funds against adverse price movements.
Mark-to-Market
Futures positions are settled daily based on settlement price movement. Gains and losses are credited or debited regularly.
Exam Tip
If the question mentions daily settlement of profit and loss, it is pointing toward mark-to-market.
Key Terms to Remember
- margin
- mark to market
- futures settlement
- initial margin
- variation margin
How to Practise
After reading this guide, attempt the related mock-test sets and review the explanations for skipped or incorrect questions. The goal is not memorising one answer, but recognising the concept in new scenarios.
Common Mistakes
Candidates often rush through familiar terms and miss the exact condition in the question. Slow down when the question includes time period, client profile, product type, regulatory role, risk level, or calculation data.
Revision Checklist
- Understand the core definition.
- Know where the topic appears in the exam category.
- Practise at least one related mock set.
- Review every wrong and skipped answer.
- Verify current rules through official sources where regulation is involved.