What is the primary impact of NSE's new margin framework on hedged positions?
"Increases margin requirements to 18.5% from 16.7%"
"Reduces margins by 70% for market-neutral positions"
"Reduces margins by 80% for spread positions"
"All of the above"
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What analogy is used to describe the benefits of a hedged position in trading?
"Driving a car with seatbelts"
"Wearing a helmet while riding a bike"
"Having insurance for your house"
"Carrying an umbrella on a cloudy day"
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Why does the new margin framework reduce margin requirements for hedged strategies?
"Hedged strategies are less complex"
"Hedged strategies are more profitable"
"Hedged strategies involve lower risk"
"Hedged strategies are favored by experienced traders"
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What is the key difference between a short strangle and an iron condor?
"Iron condor involves buying options, while short strangle involves selling options"
"Short strangle has limited risk, while iron condor has unlimited risk"
"Iron condor limits potential losses by adding protective options"
"Short strangle is suitable for volatile markets, while iron condor is not"
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What is the recommended sequence for executing an iron condor trade?
"Sell OTM Call, Sell OTM Put, Buy far OTM Call, Buy far OTM Put"
"Buy far OTM Call, Buy far OTM Put, Sell OTM Call, Sell OTM Put"
"Buy far OTM Call, Sell OTM Call, Buy far OTM Put, Sell OTM Put"
"Sell OTM Put, Buy far OTM Put, Sell OTM Call, Buy far OTM Call"
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How does the ROI of an iron condor compare to a short strangle under the new margin framework?
"Iron condor has a significantly lower ROI"
"Short strangle has a slightly lower ROI"
"Iron condor has a higher ROI due to lower margin requirements"
"Both strategies have similar ROI"
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