The amount that brokers must collect from their customers before they make any futures purchases or sales of future contracts is called
A)the strike price.
B)an option premium.
C)the performance bond.
D)the margin requirement.

Question

Quizplus · Accepted Answer

The margin requirement is the amount that brokers must collect from their customers before they make any futures purchases or sales of future contracts to ensure that the customer has sufficient funds to cover any potential losses. This ensures that the customer has some skin in the game and can cover any losses they may incur.

The Amount That Brokers Must Collect from Their Customers Before