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cassandra_dan cassandra_dan
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2 years ago
The margin deposit associated with the purchase of a futures contract

▸ is a partial payment on the contract with the amount of the payment equal to 10% or more of the contract value.

▸ represents the purchasers equity in the contract with the balance of the contract financed with borrowed funds at the margin rate of interest.

▸ is related to the value of the item underlying the contract.

▸ is used to cover any loss in market value of the contract resulting from adverse price fluctuations.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
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karisantikarisanti
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2 years ago
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