Stock Trading Margins and Risk Management
4 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

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 (D)</p> Signup and view all the answers

More Like This

Stock Trading Confirmation Process
10 questions
Stock Trading Strategies Quiz
12 questions
Stock Trading in the Late 1920s
15 questions

Stock Trading in the Late 1920s

IntelligibleJadeite5694 avatar
IntelligibleJadeite5694
Use Quizgecko on...
Browser
Browser