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Day Trading MCQs

What is meant by a margin call?

When a brokerage asks the investor to put money up front before extending the margin

When a brokerage requires a stock trader to pay for loans the brokerage has made to the trader

When an investor executes a call option

When an investor executes a short sale

Answer

Correct Answer: When a brokerage requires a stock trader to pay for loans the brokerage has made to the trader

Explanation:

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