CEX Quiz Answers 25 November 2024Open CE…

CEX Quiz Answers 25 November 2024
Open CEX IO Bot: https://t.me/cexio_tap_bot?start=1726737471260929
#CEXQuiz #CEXIOQuiz
➡️Task: “What Is a Margin Call in Trading?”
1. How is a margin call similar to a warning?
✔️It gives you a chance to add funds or adjust your position
2. When does a margin call happen?
✔️When your account’s equity falls below the maintenance margin
3. What is the best approach to handling margin calls?
✔️Trade responsibly and avoid them in the first place
3. Why might a broker issue a margin call?
✔️To ensure there’s enough collateral to cover potential losses
4. What happens if your equity is above the maintenance margin?
✔️Your position remains open without issues
5. What does a broker do if you ignore a margin call?
✔️They may liquidate your position
6. What is the main risk of trading with margin?
✔️Losses can grow quickly if the market moves against you
7. What is liquidation?
✔️Automatically closing your position to prevent further losses
8. What is the maintenance margin?
✔️The minimum amount of equity you need to keep your position open
9. What’s a simple way to avoid a margin call?
✔️Use stop-loss orders and monitor your balance regularly
10. What did the video say about platforms like CEX. IO (http://CEX.IO/)?
✔️They provide tools to monitor margin levels and risks
11. What is a margin call?
✔️ A broker’s request to add more funds to cover losses