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MAS Exam Module 18 Study Note 2

Q21: Explain the concept of margin trading in the context of securities and derivatives.A21: Margin trading involves borrowing funds from a broker to buy securities or derivatives, using the purchased assets as collateral. It allows traders to increase their buying power and potential returns. However, margin trading also carries higher risk, as losses can exceed …

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To access this post, you must purchase SIDC Exam Module 18 - Securities and Derivatives Trading (Products and Analysis) (90 Days Access), SIDC Exam Module 18 - Securities and Derivatives Trading (Products and Analysis) (1 Week Access) or SIDC Exam Module 18 - Securities and Derivatives Trading (Products and Analysis) (1 Month Access).

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