3.9k views
0 votes
"when buying or selling a futures contract, the trader commits what amount of funds"

User Srisa
by
8.7k points

1 Answer

7 votes
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.
User Utpaul
by
8.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.