If funds rise above the initial margin requirement as a result of marking to market, they may be
A) automatically rolled over to purchase more of the same futures contracts
B) withdrawn by the clearinghouse and placed in an interest-bearing account
C) used to satisfy undermargined positions in other contracts
D) withdrawn by the investor

Question

Quizplus · Accepted Answer

When funds in a margin account rise above the initial margin requirement due to profits from marking to market, the excess funds are not automatically used for any specific purpose by the clearinghouse or broker. Instead, the investor has the option to withdraw these excess funds. The other options (A, B, C) are not standard practices for handling excess margin funds.

If Funds Rise Above the Initial Margin Requirement as a Result