The Normal Initial Margin Requirement for Commodities or Financial Futures

question 49

True/False

The normal initial margin requirement for commodities or financial futures ranges from about 2% to 10% of the value of the contract.

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Definitions:

Federal Personal Income Tax

A tax levied by the federal government on the income of individuals, adjusted for various deductions and exemptions.

Personal Income Tax

A tax levied on individuals or households based on the level of their income.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government, after deductions and exemptions.

Marginal Tax Rate

It is the rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.