Futures Contracts Can Result in Significant Losses for Traders

question 33

Essay

Futures contracts can result in significant losses for traders.Explain how the market manages default risk.In your answer refer to the initial margins currently required by the ASX (Table 13.2)and comment broadly on how these margins are determined.

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Definitions:

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A region in the United States known for its unique cultural heritage, blending Native American, Mexican, and American influences, often characterized by its desert landscape.

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The acceptance of different religious beliefs and practices, allowing individuals to worship according to their own faiths without persecution.