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Which one of the following statements is incorrect

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Which one of the following statements is incorrect regarding the margining of exchange-traded futures contracts?

A. Day trades and spread transactions require lower margin levels.

B. If an investor fails to deposit variation margin in a timely manner the positions may be liquidated by the carrying broker.

C. Initial margin is he amount of money that must be deposited when a futures contract is opened.

D. A margin call will be issued only if the investor's margin account balance becomes negative.

Reference no: EM13568788

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