Margin requirements are deposits placed by investors in futures contracts with their respective brokerage firms when they take their position. They are intended to minimize credit risk associated with futures contracts.

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Margin requirements are indeed intended to minimize credit risk associated with futures contracts by requiring investors to place a deposit with their brokerage firms. This deposit serves as a form of collateral and helps ensure that the investor will have sufficient funds to meet their obligations under the contract.

Margin Requirements Are Deposits Placed by Investors in Futures Contracts