Based on WWC7K-746M and X7VR8-RMJWF
For WWC7K-746M, the answer was $700 which must be fully deposited instead of $2,000.
But for X7VR8-RMJWF, the answer was $2,000 instead of $1600.
Why is that?
I am confused by the logic. Did I miss something?
I understand it must be greater than 50% initial deposit or $2,000 for the margin account.
PS: I wish I could go back in these previous questions so I can see the difference in question style being asked.
The difference in the questions is buying vs. short selling. Here are some similar examples to illustrate the difference:
Buying 100 ABC @ $15 in a margin account
If the stock value sinks greatly, the maximum amount of risk is the purchase amount of $1,500 (100 x $15). Since the risk is limited, the $2,000 minimum doesn’t apply.
Short selling 100 ABC @ $15 in a margin account
If the stock value rises greatly, the maximum amount of risk is unlimited, so the minimum of $2,000 in account equity does apply.
We are working on a feature to allow you to directly share/save a specific instance of a question, hoping to launch it early in the new year!
Thank you! This totally made sense now!