- A. For hedgers, there is no difference between initial and maintenance margins; that only applies to speculators. C and D have nothing whatever to do with margin requirements.
- D. T-bonds and T-notes trade in points and 32nds. T-bills trade in decimals.
- False. Price limits control how far the contract's value can swing through the course of a trading day, not through the entire life of the position.
- B. A retender is actually a way of perpetuating a position.
- C. The other terms do not relate to the concept.
TradingFutures trading is risky business, so it's crucial that traders' positions match the level of risk they are willing to bear.
InvestingA treasury note is a U.S. government debt security that offers a fixed interest rate and a maturity date that ranges between one and 10 years.
InvestingThe U.S. government has two primary methods of raising capital. One is by taxing individuals, businesses, trusts and estates; and the other is by issuing fixed-income securities that are backed ...
InvestingA perpetual bond makes interest payments to the investor forever. This type of bond holds a certain appeal to both the issuer and buyer.
Financial AdvisorA maintenance margin is the minimum amount of equity that must be kept in a margin account.