Margin Flashcards
1
Q
Margin means?
A
The minimum amount required for the investor to pay in cash.
The other half could be borrow
2
Q
Trigger Price Formula
A
Po (1- margin)
———————-
(1- maintenance margin)
3
Q
Leverage Factor
A
1 / initial margin
4
Q
Calculation of return on trade with levarage
A
Identify the leverage ratio (1/margin)
How much money was made
What is the % of proprietary capital
Return = (profit - leverage) / proprietary capital
5
Q
What is a good-till-order
A
A order that starts to exist in a determined price
