The Initial Margin Required for Futures Trading

question 31

Multiple Choice

The initial margin required for futures trading

• A)is only put up by the seller.
• B)is only put up by the buyer.
• C)can be put up by either party,whoever initiates the transaction.
• D)must be put up by both the buyer and the seller.

---

Definitions:

Death Benefit

A sum of money paid by an insurance policy or retirement plan to the beneficiary upon the death of the insured person or plan holder.

Losses

The negative financial impact that occurs when expenses exceed revenues, or due to unforeseen events or damages.

Mutual Mistake

An error shared by all parties in a contract, leading to a misunderstanding regarding a fundamental fact or element of the agreement.

Fraud

Deliberate deception or misrepresentation intended to result in an unfair or unlawful gain.