Initial margin is usually set in the region of ________ of the total value of a futures contract.
A) 5%-15%
B) 10%-20%
C) 15%-25%
D) 20%-30%

Question

Quizplus · Accepted Answer

Initial margin is usually set in the region of 5%-15% of the total value of a futures contract. This means that a trader must deposit this amount of money upfront to buy or sell a futures contract. The margin acts as a cushion against losses and ensures that both parties in the contract have enough funds to settle their obligations.

Initial Margin Is Usually Set in the Region of ________