What is the term for the deposit required in a futures contract that acts as a security to ensure the contract's terms will be met?

World Stock Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
World Stock Marketsfinance-mcqs › world-stock-markets
Published
13 May 2023
Last updated
28 May 2026

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Explanation

The initial margin is the upfront deposit required in futures contracts to guarantee that both parties will fulfill their contractual obligations. It serves as a financial assurance against potential default.

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