In the futures market margin is:
A) a down payment where money is borrowed from the broker to finance the total cost.
B) is subject to weekly resettlement based on marked to market.
C) is a good faith deposit made by both long and short positions to ensure the completion of the contract.
D) is currently set at 75% of market value.

Question

Quizplus · Accepted Answer

In the futures market, margin is a good faith deposit made by both long and short positions to ensure the completion of the contract. It is not a down payment or a borrowing mechanism, and it is not set at a fixed percentage of market value.

In the Futures Market Margin Is