Small margin requirements for futures contracts implies
1) the potential profit is magnified
2) the potential loss is magnified
3) the speculator's risk exposure is increased
4) the speculator's risk exposure is decreased
A)1 and 3
B)1 and 4
C)1, 2, and 3
D)1, 2, and 4

Question

Small margin requirements for futures contracts implies
1) the potential profit is magnified
2) the potential loss is magnified
3) the speculator's risk exposure is increased
4) the speculator's risk exposure is decreased​
A)1 and 3
B)1 and 4
C)1, 2, and 3
D)1, 2, and 4

Quizplus · Accepted Answer

Small margin requirements for futures contracts implies
1) the potential profit is magnified
2) the potential loss is magnified
3) the speculator's risk exposure is increased
4) the speculator's risk exposure is decreased

Small Margin Requirements for Futures Contracts Implies