Q. What does "margin" mean in commodity futures trading?
Answer: A percentage of the contract value required as a deposit to enter into a futures position
Notes: Margin is a percentage of the total contract value that traders must deposit as collateral to enter into a futures position. It ensures that traders have skin in the game and mitigates counterparty risk.
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📌 Question Number: 7 in Commodity Futures in the above course in App.