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mooncalled mooncalled
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The purchaser of a futures contract

▸ is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment.

▸ is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract is entered.

▸ does not have to worry about margin calls since margin loans are not required.

▸ is affected by the daily procedure known as mark-to-the-market.
Textbook 

Fundamentals of Investing


Edition: 14th
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callisonrcallisonr
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is affected by the daily procedure known as mark-to-the-market.

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