Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which best explains how buying on margin increases the leverage of currency traders? Responses Margin buying gives traders a profit rate that is one unit

Which best explains how buying on margin increases the leverage of currency traders? Responses Margin buying gives traders a profit rate that is one unit higher. Margin buying gives traders a profit rate that is one unit higher. Borrowing money allows traders to make large purchases without a large amount of money up front. Borrowing money allows traders to make large purchases without a large amount of money up front. Currency purchases can only be made on the large scale, enabled by borrowing from currency brokers. Currency purchases can only be made on the large scale, enabled by borrowing from currency brokers. Buying on margin allows traders to sell shares in a company that they do not yet own

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Michael Parkin

12th edition

133872297, 133872293, 978-1292094632

More Books

Students also viewed these Economics questions