The biggest benefit of a futures exchange is to
A) guarantee trading volume
B) give free legal advices
C) eliminate risk exposure for customers
D) protect traders from government intervention
E) provide clearing services

Question

Quizplus · Accepted Answer

The biggest benefit of a futures exchange is to provide clearing services, which entails managing the risk of default by both parties involved in a trade. This involves acting as an intermediary and ensuring that the trade is settled and any profits or losses are paid. Clearing services provide greater transparency, efficiency, and security for traders, which makes futures exchanges a more attractive option for investors.

The Biggest Benefit of a Futures Exchange Is to