Question

"A pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day. The minimum maintenance margin requirement is:"

Answer 1

Answer:

C. $50,000

Explanation:

These are options for the question;

maintenance margin requirement is:

A. 0

B. $25,000

C. $50,000

D. $100,000

From the question, we were told that a pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day.

There is a standard of minimum margin rule by FINRA for market value and this minimum margin is either the same or more than 25% , or more than a value of $25,000,

But we are given a high market value of $200,000 thenThen the minimum maintenance margin requirement is:"

$200,000 x 25%

= $200,000×(25/100)

= $50,000