Understanding Margin Trading
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Questions and Answers

What is the primary advantage of Margin Trading?

  • It allows clients to trade more than their capital (correct)
  • It enforces strict capital controls
  • It limits the potential for earnings
  • It reduces the risk of losses

    • How does Margin Trading affect potential losses?

  • It decreases potential losses
  • It has no impact on potential losses
  • It gives a guarantee against potential losses
  • It increases potential losses (correct)

    • What is the risk associated with Margin Trading?

  • Decreased risk of losses
  • Guaranteed profits
  • Potential for increased losses (correct)
  • No risk involved

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