On exchange-traded currency futures contracts, ______.
A) commissions are charged as a bid-ask spread
B) expiration dates are negotiated
C) initial and maintenance margins are required
D) the contracts are traded only during normal banking hours
E) the contracts are typically settled by physical delivery

Question

Quizplus · Accepted Answer

Initial and maintenance margins are required on exchange-traded currency futures contracts to ensure that traders have enough capital to cover potential losses. The other options are incorrect as commissions on futures contracts are typically charged separately from bid-ask spreads, expiration dates are predetermined, futures contracts can be traded outside of normal banking hours, and settlement can be either physical or cash.

On Exchange-Traded Currency Futures Contracts, ______