Page 22 - Futures Money Machine-Study Session #3
P. 22
Understanding Futures
Futures Margin …
Traders in a futures contract are required to post performance bond
margins in order to open and maintain a futures position. This is
referred to has margin.
Futures margin requirements are set by the exchanges and are typically
only 2 to 10 percent of the full value of the futures contract.
Margins are financial guarantees required of both buyers and sellers of
futures contracts to ensure that they fulfill their futures contract
obligations.
