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Futures Markets
Exchanges that facilitate the buying and selling of futures contracts, which are agreements to buy or sell assets at a future date at a predetermined price.
Leverage
The use of borrowed money to increase the potential return of an investment, which can also magnify the potential loss.
Margin
The difference between the selling price of a product or service and its cost, or the borrowed funds used to invest in securities.
Margin Call
A demand by a broker that an investor deposits further cash or securities to cover possible losses.
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