The initial margin for a futures contract varies, but generally ranges between _________ of the contract value on ________.
A) 2-10%; long position only
B) 5-10%; long position only
C) 5-15%; short position only
D) 2-5%; both long and short position
E) 1-15%, both long and short position

Question

Quizplus · Accepted Answer

The initial margin for a futures contract varies depending on the contract but generally ranges between 2-5% of the contract value and is required for both long and short positions. Therefore, option D is the best choice. Options A, B, and C are incorrect as they either specify the margin requirement for only long positions or provide incorrect margin ranges. Option E includes a margin range that is not commonly seen for futures contracts.

The Initial Margin for a Futures Contract Varies, but Generally