There is no limit to the amount of loss that can occur with a futures contract.

Name: There is no limit to the amount of loss that can occur with a futures contract.
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Question

Quizplus · Accepted Answer

Futures contracts have unlimited potential for loss because traders are obligated to either buy or sell the commodity at a predetermined price regardless of how far the price moves against them. Therefore, it is important for traders to use risk management strategies and have sufficient capital to cover potential losses.

There Is No Limit to the Amount of Loss That