If the purchaser of a futures contract fails to meet a margin call,
A) his/her contract will be sold at the current market price.
B) his/her contract will automatically be executed along with immediate delivery.
C) their local broker can decide to waive the call.
D) they will be given a 30-day grace period before payment is required.

Question

Quizplus · Accepted Answer

When a purchaser of a futures contract fails to meet a margin call, the brokerage firm has the right to liquidate the position at the current market price to cover any losses. This is a standard practice in futures trading to manage risk.

If the Purchaser of a Futures Contract Fails to Meet