Briefly Discuss the Concept of Margin in Futures Trading

question 1

Essay

Briefly discuss the concept of margin in futures trading.

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Definitions:

Mortgage Bonds

Bonds secured by a mortgage on one or more assets, providing bondholders a claim on those assets in case of default.

Good Faith

Acting with honest intention or belief without intending to deceive.

Credit

Refers to the provision of resources (such as money) by one party to another party with the understanding that the resources will be repaid, often with interest, at a future date.

Issuance Price

The price at which a company's securities are offered to the public for sale for the first time.