Final answer:
The small commitment fee for a futures contract is known as a margin, which serves as collateral to ensure the contract's performance.
Step-by-step explanation:
The small commitment fee needed to purchase a futures contract is called a margin. This fee serves as collateral to ensure the performance of the futures contract by the purchaser. In the context of hedging, firms often use futures contracts to guarantee a certain exchange rate for a currency in the future, thus protecting against the risk of exchange rate fluctuations. Companies providing such hedging services may require a fee or create a spread in the exchange rate to earn from the service provided.