To buy a futures contract, one must post a(n):
A) maintenance margin.
B) variation margin.
C) market margin.
D) initial margin.
E) marked margin.

Question

Quizplus · Accepted Answer

To buy a futures contract, one must post an initial margin, which is a percentage of the total contract value. The initial margin serves as collateral for any losses that may be incurred during the period of the contract.

To Buy a Futures Contract, One Must Post A(n)