My answers:
1. B
2. B
3. B
4. C
5. B
6. C
7. B
8. B
9. A
10. D
My key takeaway is that margin is not simply about increasing buying power. Understanding borrowing costs, maintenance requirements, excess liquidity and downside risk is just as important. The 10% drop example is a good reminder that leverage can amplify losses — a 10% decline on a 2× position means roughly a 20% loss on your own capital, before interest and fees.
For me, the most useful margin features are additional buying power and the ability to trade before sale proceeds settle, but I would still use leverage selectively and keep enough liquidity to manage volatility.
@TigerStars @TigerClub @Tiger_comments
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments