An established value below which a trader's margin may not fall is called the ________.
A) daily limit
B) daily margin
C) maintenance margin
D) convergence limit

Question

Quizplus · Accepted Answer

The established value below which a trader's margin may not fall is called the maintenance margin. It is a predetermined minimum amount of equity that must remain in an account after a trade is made. If a trader's margin falls below the maintenance margin, the trader will receive a margin call from their broker, requiring them to deposit more funds into the account to bring the margin back up to the minimum level. The other options are not relevant to this concept.

An Established Value Below Which a Trader's Margin May Not