The Basic Reason Why Investors Use Spreading Strategies When Speculating

question 69

Multiple Choice

The basic reason why investors use spreading strategies when speculating in commodities is to

• A) increase leverage.
• B) increase profits.
• C) reduce risk.
• D) decrease transaction costs.

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Definitions:

Open Questions

Inquiries that cannot be answered with a simple yes or no, encouraging more detailed and thoughtful responses.

Client Control

The degree to which a client has influence or authority over the aspects and outcomes of a service or professional relationship.

Planning Summary

A comprehensive overview or document outlining the objectives, strategies, and actions intended to achieve specific goals.

Signal

A sign or piece of information that indicates or communicates a specific message, condition, or occurrence.