The Normal Initial Margin Requirement for Commodities or Financial Futures

question 26

True/False

The normal initial margin requirement for commodities or financial futures ususally represents about 5% of the value of the contract.

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Definitions:

Obamacare

Informal term for the Patient Protection and Affordable Care Act, a federal statute aimed at decreasing uninsured rates and reducing healthcare costs.

Insurance Exchanges

Marketplaces established to facilitate the purchase of health insurance in accordance with the rules of the Affordable Care Act.

Foster Competition

Encourages or promotes a competitive environment within a market, leading to benefits such as innovation and lower prices.

Insurance Companies

Financial institutions that provide coverage against specified losses in exchange for premium payments.