Question

The initial margin required for futures trading a. is only put up by the seller. b. is only put up by the buyer. c. can be put up by either party, whoever initiates the transaction. d. must be put up by both the buyer and the seller.

Answer 1

The initial margin required for futures trading must be put up by both the buyer and the seller.

What is futures trading?

Futures contract is a standardized agreement between a buyer and a seller where there is an agreement to exchange a good at some point in the future. The buyer has a long position in the futures contract while the seller has a short position in the contract.  

Futures trading is the trading of a futures contract. Futures trading usually occurs on an exchange. The initial margin is the amount of money needed the exchange to initiate a futures position between a buyer and seller.

To learn more about futures contract, please check: https://brainly.com/question/20216200

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