"when buying or selling a futures contract, the trader commits what amount of funds"

1 answer:

Nadusha1986 [10]4 years ago

8 0

When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made.

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