Variation margin is which of the following?
A) the difference in margin between hedger and speculator
B) margin differences according to trading style
C) margin deposited as a result of marking-to-market
D) margin set by the variability of a futures price
E) none of the above

Question

Quizplus · Accepted Answer

Variation margin is the margin deposited by both parties involved in a futures contract as a result of marking-to-market, which is the process of adjusting the contract's value to reflect the current market price. It is also known as maintenance margin.

Variation Margin Is Which of the Following