It is accurate to say that futures contracts call for the payment of an initial margin requirement.
Futures contracts: what are they?
A futures contract is a legally binding agreement to buy or sell stocks, commodities, or both at a certain price and time in the future. Futures contracts are standardised for both quality and quantity with the aim of facilitating trade on a futures exchange.
When buying a futures contract, the buyer takes on the obligation of getting the underlying asset at the contract's expiration and paying for it. By the expiration date, the seller of the futures contract must have the underlying asset available and ready to deliver.
On a futures transaction, a margin called the initial margin requirement would have to be paid.
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