The margin requirement for a futures contract is a
1) small percent of the value of the contract
2) large percent of the value of the contract
3) source of leverage
A)1 and 2
B)1 and 3
C)2 and 3
D)only 3

Question

​The margin requirement for a futures contract is a
1) small percent of the value of the contract
2) large percent of the value of the contract
3) source of leverage
A)1 and 2
B)​1 and 3
C)​2 and 3
D)​only 3

Quizplus · Accepted Answer

The margin requirement for a futures contract is a small percentage of the value of the contract, typically between 5% and 15%, which makes it a source of leverage. This means that traders can control a large amount of an underlying commodity or financial instrument with a relatively small amount of capital.

​The Margin Requirement for a Futures Contract Is a

The Margin Requirement for a Futures Contract Is a