A margin requirement is the amount brokers must collect from which of the following?
A)the clearinghouse
B)all customers before a futures transaction can be executed
C)the pit
D)the seller of the futures agreement

Question

Quizplus · Accepted Answer

Margin requirements refer to the amount of money that brokers must collect from their customers before executing a futures transaction. This ensures that the customer has enough funds to cover any losses that may occur in the transaction. The clearinghouse is responsible for ensuring the integrity of the futures market, not collecting margins. The pit is where traders in the futures market conduct transactions, but not where margin requirements are collected. The seller of the futures agreement may be required to post margin, but the broker is responsible for collecting margin from customers.

A Margin Requirement Is the Amount Brokers Must Collect from Which