Stock Trading Margins and Risk Management
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Questions and Answers

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?

  • 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?

  • 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?

    <p>Cash value</p> Signup and view all the answers

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