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Questions and Answers
What are the two required margins in a dmat account before trading?
What are the two required margins in a dmat account before trading?
- Risk margin and buffer margin
- Initial margin and exposure margin (correct)
- Initial margin and settlement margin
- Security margin and exposure margin
What does VAR stand for in the context of the initial margin?
What does VAR stand for in the context of the initial margin?
- Variable asset return
- Virtual asset reserve
- Value at risk (correct)
- Volatility adjustment ratio
What happens if losses exceed the initial margin in a dmat account?
What happens if losses exceed the initial margin in a dmat account?
- The broker might not be able to recover from the customer (correct)
- The broker will cover the losses
- The NSE will recover the losses from the customer
- The customer will receive a refund from NSE
What is the contract value in the context of futures or options?
What is the contract value in the context of futures or options?
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