What does the Margin Calculator primarily help with? Option: Assessing the volatility of an underlying asset., Determining the margin requirement for a futures contract., Calculating profit and loss in futures trading., Predicting future price movements of stocks.

<< Back

Hi

Show Ans

i

What does the Margin Calculator primarily help with?

Assessing the volatility of an underlying asset.

Determining the margin requirement for a futures contract.

Calculating profit and loss in futures trading.

Predicting future price movements of stocks.

<< Back

Hi

Show Ans

i

In the context of futures trading, what does the term 'margin' refer to?

The profit or loss made on a futures trade.

The total value of the futures contract.

The percentage of the contract value required as a deposit.

The difference between the spot price and the futures price.

<< Back

Hi

Show Ans

i

What is the primary function of margin in futures trading?

To determine the daily settlement price of futures contracts.

To predict the future price movements of the underlying asset.

To calculate the potential profit or loss of a futures contract.

To ensure that both parties fulfill their obligations on contract expiry.

<< Back

Hi

Show Ans

i

What is the primary function of 'margin' in futures trading?

It is a fee charged by brokers for facilitating futures transactions

It acts as a performance bond ensuring parties fulfill their contractual obligations

It represents the initial investment required to enter a futures contract

It serves as collateral to cover potential losses exceeding the margin amount

<< Back

Hi

Show Ans

i

What is Margin in stock trading?

"Profit earned from selling stocks"

"Amount collected by the exchange as assurance of the trade"

"Difference between the ask and bid price"

"Commission charged by the broker"

<< Back

Hi

Show Ans

i

What is the primary purpose of the margin system in stock markets?

"To ensure profits for investors"

"To stabilize fluctuating stock prices"

"To mitigate risks associated with price uncertainty"

"To increase trading volume in the market"