When trading futures,margin
A)is seldom used.
B)indicates that credit is being extended.
C)is a down payment.
D)in effect,is a performance bond.

Name: When trading futures,margin A)is seldom used. B)indicates that credit is being extended. C)is a down payment. D)in effect,is a performance bond.
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Question

Quizplus · Accepted Answer

In futures trading, margin acts as a performance bond to ensure that traders can cover potential losses, rather than a down payment or credit extension.

When Trading Futures,margin