Parties to a futures contract must satisfy margin requirements (initial, maintenance, and variation), and futures contracts are marked to market at the beginning of each trading day.

Question

Quizplus · Accepted Answer

Futures contracts are indeed subject to margin requirements (initial, maintenance, and variation), but they are marked to market daily, typically at the end of each trading day, not at the beginning. This process ensures that gains and losses are reflected in the account balances of the parties each day.

Parties to a Futures Contract Must Satisfy Margin Requirements (Initial