What has happened to cause a $250 loss to be marked to the margin account of a futures contract buyer?
A) The commodity futures price decreased on that day.
B) The commodity futures price increased on that day.
C) The commodity spot price decreased on that day.
D) The commodity spot price increased on that day.

Question

Quizplus · Accepted Answer

A $250 loss would be marked to the margin account of a futures contract buyer if the commodity futures price decreased on that day. This is because the buyer would be losing money on their futures contract, and the exchange would require them to put up more margin to cover potential losses.

What Has Happened to Cause a $250 Loss to Be