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.

Question

Quizplus · Accepted Answer

The initial margin required for futures trading must be put up by both the buyer and the seller. It is a good faith deposit to ensure that both parties fulfill their obligations and minimize the risk of default. The margin requirement is set by the exchange and varies depending on the contract being traded.

The Initial Margin Required for Futures Trading