Margin required to hold a futures contract

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Reference no: EM1340136

The margin required to hold a futures contract is not a down payment but a form of security bond. If the market goes against the trader's position, he may lose some, all, or possibly more than the margin he has put up. But if the market goes with the trader's position, he makes a profit and he gets his margin back. What will be your comments on this? You agree or disagree with this post?

Reference no: EM1340136

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