All Futures Contracts Are Traded on a Margin Basis

question 19

Essay

All futures contracts are traded on a margin basis. What does "margin" mean, and how does the use of margin affect the inherent risk-return nature of the futures market?

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Definitions:

Problem-Focused Coping

Problem-focused coping involves tackling a stressful situation directly, aimed at addressing or altering the source of stress.

Type A Personality

Type A Personality is characterized by traits such as high competitiveness, self-imposed stress, impatience, and a sense of urgency, often linked to a higher risk of heart disease.

Type B Personality

A personality type characterized by a relaxed, less competitive approach to life, as opposed to the more stressed and goal-oriented Type A personality.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, heart failure, and others.