ACI
3I0-012 · Question #177
What is the purpose of an initial margin on a futures exchange?
The correct answer is A. To cover losses incurred between variation margin payments. See the full explanation below for the reasoning.
Question
What is the purpose of an initial margin on a futures exchange?
Options
- ATo cover losses incurred between variation margin payments
- BTo exclude retail investors
- CTo pay reserve requirements
- DTo cover fees due to the clearing house
How the community answered
(34 responses)- A71% (24)
- B15% (5)
- C6% (2)
- D9% (3)
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