Which of the following features is not similar between stock and futures trading?
A) Buying and selling mechanics.
B) Existence of highly organized exchanges.
C) The charging of interest on margin trades.
D) The ability of only members to trade on the floor.

Question

Quizplus · Accepted Answer

In futures trading, traders are required to post margin upfront and may face margin calls, but this is not typically considered the charging of interest on margin trades. In stock trading, buying on margin involves borrowing money from a broker to purchase stock and paying interest on the borrowed money.

Which of the Following Features Is Not Similar Between Stock