In order to prevent traders from reneging on futures contracts, exchanges require traders to maintain _____.
A) micro accounts
B) savings accounts
C) credit accounts
D) margin accounts

Question

Quizplus · Accepted Answer

Exchanges require traders to maintain margin accounts to ensure they have the necessary funds to cover potential losses, thereby preventing them from defaulting on futures contracts. Margin accounts act as a form of security or collateral.

In Order to Prevent Traders from Reneging on Futures Contracts