Derivatives Q21

0. While dealing with futures contracts, the maintenance margin requirement most likely refers to:

  • Option : C
  • Explanation : Futures position holders are required to maintain a minimum level of account balance which is called the maintenance margin requirement. The amount sufficient to bring ending account balance back to initial margin requirement is called the variation margin. Initial margin is the collateral or performance bond that ensures the fulfillment of the obligation.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *