n NISM Certifications
VII NISM Series VII
Medium

In Risk Reduction Mode, non-margined orders are accepted by the trading system — True or False?

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

When a broker is in risk reduction mode (after 90% of collateral is used), non-margined orders are not accepted to prevent excessive exposure.

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