A buyer's margin account must always have a daily balance sufficient to cover at least one day's potential loss.

Question

Quizplus · Accepted Answer

This is true. A buyer's margin account is used to invest in securities using borrowed funds from a broker. Since the borrowed funds are subject to interest and the value of the securities can fluctuate, the account owner must maintain a minimum balance to ensure that they can cover any potential losses. This minimum balance must always be sufficient to cover at least one day's potential loss.

A Buyer's Margin Account Must Always Have a Daily Balance