Futures exchanges protect themselves by requiring traders to post:
AManifest
BMargin
CMarker
DMandate
Answer & Solution
Correct answer: B. Margin
1. A good faith deposit is demanded up front.
2. It covers adverse price moves.
3. That deposit is margin.
_Source: OpenStax Principles of Finance, Chapter 20, Risk Management and the Financial Manager._
Keep practising Risk Management and Hedging
Browse all Risk Management and Hedging questions for IRDA Insurance Advisor, or explore more Finance topics.