The ________ is the percentage of the total sales price that a buyer must put up to place an order for a stock or a futures contract.
A) installment
B) up-front money
C) purchase money
D) down payment
E) margin

Question

Quizplus · Accepted Answer

The term described in the question is known as margin. Margin is the amount of money or percentage of the total sales price that a buyer must put up to place an order for a stock or a futures contract. It is a type of security deposit that ensures the buyer will fulfill their end of the contract. The other options listed (installment, up-front money, purchase money, and down payment) do not account for the specific context of trading securities or futures contracts.

The ________ Is the Percentage of the Total Sales Price