Commodity trading - It is $2,000 or 10%.

In a business recession, it was pointed out, the house might bring only $17,000. It might bring no more in a foreclosure sale even in good times. The first mortgage holder would thus lose $1,000. Now suppose this house had a first mortgage on it of $5,000, and a second mortgage of $2,000 was offered to you. The equity would then be the difference between the price of $20,000 and the sum of the first and second mortgages ($5,000 + $2,000 = $7,000). Hence the equity is $13,000.

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Commodity options trading

[tags]commodity trading Charts[/tags]