Since futures contracts are traded on an exchange, the exchange will always take the "other side" of the transaction in terms of accepting the credit risk.

Name: Since futures contracts are traded on an exchange, the exchange will always take the "other side" of the transaction in terms of accepting the credit risk.
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Question

Quizplus · Accepted Answer

The exchange acts as an intermediary and clearinghouse, ensuring both parties fulfill their obligations, thus mitigating credit risk.

Since Futures Contracts Are Traded on an Exchange, the Exchange