n NISM Certifications
NSM General NISM
Medium

In the context of derivatives, 'Leverage' refers to:

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Using borrowed funds to increase potential returns (Correct)

    Correct answer

  2. B

    The guaranteed profit from a trade

  3. C

    The amount of collateral required

  4. D

    The maximum loss possible in a trade

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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