If a speculator has a short position and the commodity's price falls, that individual will receive a margin call.

Question

If a speculator has a short position and the commodity's price falls, that individual will receive a margin call.​

Quizplus · Accepted Answer

If a speculator has a short position and the commodity's price falls, that individual would make a profit and would not receive a margin call. Margin calls typically occur when the price of the commodity rises and the speculator's losses exceed their initial margin deposit.

If a Speculator Has a Short Position and the Commodity's