If an investor cannot meet a margin call, the exchange clearinghouse subtracts the amount due from the margin account and closes out the futures contract.

Question

Quizplus · Accepted Answer

This is true. If an investor cannot meet a margin call, the exchange clearinghouse will typically take action to protect itself and close out the futures contract to offset the risk. This may involve subtracting the amount due from the margin account or taking other steps as necessary.

If an Investor Cannot Meet a Margin Call, the Exchange