U.K. Brokerages Put Limits on Trading

U.K. Brokerages Put Limits on Trading

Assessment

Interactive Video

Business

University

Hard

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The video discusses the growth of retail trading in the UK, highlighting how UK brokerages are struggling to keep up with the increasing number of retail traders. It mentions specific actions taken by brokerages like Trading 2121 and IG Group to manage risks, such as placing limits on penny stocks and suspending leveraged trading. The video also touches on the growing spending in the UK related to trading and the potential risks this poses, drawing parallels with the US GameStop situation.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the trend regarding retail traders in the UK?

The number of retail traders is decreasing.

The number of retail traders is increasing.

Retail traders are moving to the US.

Retail trading is banned in the UK.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What action has Trading 2121 taken in response to the retail trading trend?

They have placed limits on buying penny stocks.

They have increased leverage on penny stocks.

They have merged with IG Group.

They have banned all retail trading.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has IG Group responded to the increase in retail traders?

By reducing trading fees.

By closing their UK operations.

By suspending leveraged trading on some shares.

By offering more shares for trading.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial trend is associated with the rise of retail trading in the UK?

A decrease in credit card usage for brokerages.

A reduction in the number of brokerages.

A decline in brokerage profits.

An increase in spending and credit card usage for brokerages.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might the UK need to consider in light of the retail trading trend?

Encouraging more retail traders to join.

Implementing similar regulatory measures as the US.

Reducing the number of brokerages.

Banning all retail trading activities.