Which of the following statements is not correct in relation to margin lending.

a.

Margin lender would prefer a larger percent buffer if they wished to reduce their risk.

b.

Margin lender would prefer a smaller percent buffer if they wish to reduce their risk.

c.

Margin call in margin lending is used to protect the lender from potential losses due to adverse changes in the value of the underlying security/portfolio.

d.

Margin investor/borrower prefers a high LVR on a security when they wish to borrow more.

e.

Margin lending enables investors to use leverage when investing.