Question

D Question 6 1.5 pts A margin call is made when an account falls below the initial margin, but not below the maintenance marg

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Question 6: Answer True

Margin call made when a accounts fall below the initial margin, But not below maintenance margin.A margin call happens when a broker demands that an investor deposits additional money or securities so that the margin account is brought up to the minimum maintenance margin. A margin call occurs when the account value falls below the broker's required minimum value

Question 7: Answer: True.

Inter commodity spread is spread between two different, but related commodity. In the commodities market, a spread consisting of a long position and a short position in different but relatedcommodities for example, speculating that the price relationship between the two commodities will change.

Question 8: Answer: False

The relation between risk and borrowing can be measured by the leverage ratio. The maximum leverage ratio calculates financial leverage if the trader equity position is equal to the initial margin requirement.

Leverage ratio = Total value of position/Equity value of position

Maximum leverage ratio = 1/Initial margin requirement

Add a comment
Know the answer?
Add Answer to:
D Question 6 1.5 pts A margin call is made when an account falls below the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT