Which of the following is a facilitator in all futures trades, since all contracts are purchased from or sold by this entity?
A) The futures clearinghouse
B) The futures trading floor
C) The futures broker
D) The futures exchange

Question

Quizplus · Accepted Answer

The futures clearinghouse acts as a facilitator in all futures trades by ensuring that both buyers and sellers meet their obligations. It serves as the counterparty to both sides of a futures contract, which helps in reducing the risk of default.

Which of the Following Is a Facilitator in All Futures