Why do both the buyer and the seller of futures contracts have to put up performance bonds?

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Why do both the buyer and the seller of futures contracts have to put up performance bonds? When does the seller profit? When does the buyer profit?

How is the clearing house protected from losses?

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Financial System Of The Economy Principles Of Money And Banking

ISBN: 9780765622464

5th Edition

Authors: Maureen Burton,Bruce Brown

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Question Posted: Nov 28, 2023 11:59 PM

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Why do both the buyer and the seller of futures contracts have to put up performance bonds?

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In futures markets both the buyer and the seller are required to put up performance bonds commonly known as margin to ensure the fulfillment of their ...View the full answer

Financial System Of The Economy Principles Of Money And Banking

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