Some analysts compare the initial margin on a futures contract to a down payment. Some label it

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Some analysts compare the initial margin on a futures contract to a down payment. Some label it a performance bond. What is the difference between these interpretations?

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:57 AM

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Some analysts compare the initial margin on a futures contract to a down payment. Some label it

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With initial margin the trader has a position but does not own any und...View the full answer

Bank Management

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