Futures exchanges require traders to have margin accounts in order to insure that traders do not renege on their trade.

Name: Futures exchanges require traders to have margin accounts in order to insure that traders do not renege on their trade.
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Question

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Futures exchanges require traders to maintain margin accounts to ensure they have sufficient funds to cover potential losses, thereby reducing the risk of default on their obligations.

Futures Exchanges Require Traders to Have Margin Accounts in Order