Margin must be posted by ________.
A) buyers of futures contracts only
B) sellers of futures contracts only
C) both buyers and sellers of futures contracts
D) speculators only

Question

Quizplus · Accepted Answer

Both buyers and sellers of futures contracts are required to post margin. Margin is a performance bond required by the futures exchange to ensure that both parties fulfill their obligations under the contract. Buyers post margin to ensure their ability to pay for the underlying asset while sellers post margin to ensure delivery of the underlying asset. Speculators also have to post margin if they trade futures contracts.

Margin Must Be Posted by ________