Margin Requirements Are Deposits Placed by Investors in Futures Contracts

question 130

True/False

Margin requirements are deposits placed by investors in futures contracts with their respective brokerage firms when they take their position. They are intended to minimize credit risk associated with futures contracts.

---

Definitions:

Obedience

Obedience refers to compliance with commands given by an authority figure, often studied in psychology to understand the extent and limits of social influence over behavior.

Orders Over The Telephone

A process where customers or clients place orders for products or services by speaking directly to a supplier or service provider over the phone.

Obedience

The act of following orders or directions from someone in authority, often studied in psychology as a behavior.

Conformity

The practice of aligning one's attitudes, beliefs, and actions with the norms, policies, or expectations of a group or society.