Quiz on ” CFDs – Margin, Leverage and Assets for CFD Trading “

1. What is margin in CFD trading?

a) The amount of money you receive when you sell a CFD

b) The amount of money you deposit to establish a CFD position

c) The amount of money you receive when you close a CFD position

2. What is leverage in CFD trading?

a) The amount of money you deposit to establish a CFD position

b) The amount of money you receive when you close a CFD position

c) The use of borrowed funds to increase the potential return of an investment

3. How does volatility affect the margin requirement in CFD trading?

a) The higher the volatility, the lower the margin requirement

b) The higher the volatility, the higher the margin requirement

c) The volatility has no effect on the margin requirement

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