Which of the following is an attribute of futures contract?
A) There are no limits on the size of the position that any investor can take in financial futures markets.
B) Futures contracts are marked to the market on a daily basis
C) Margins for futures are more relative to other types of markets.
D) Almost all futures positions are settled by delivery.

Question

Quizplus · Accepted Answer

Futures contracts are marked to the market on a daily basis, which means the gains and losses are settled every day based on the current market prices. This allows investors to manage their risk and margin requirements more effectively. Option A is incorrect because there are position limits set by the exchange to control excessive speculation. Option C is incorrect because margins for futures are usually higher than other markets due to their high leverage. Option D is incorrect because most futures contracts are settled in cash instead of physical delivery.

Which of the Following Is an Attribute of Futures Contract