Futures: Difference between revisions
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Because futures contracts are exchange traded they involve standard amounts and standard expiry dates. | Because futures contracts are exchange traded they involve standard amounts and standard expiry dates. | ||
They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments. | They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments. |
Revision as of 21:06, 2 May 2020
Exchange traded contracts used for either hedging or speculating in relation to outturn market rates on a prespecified date in the future.
Because futures contracts are exchange traded they involve standard amounts and standard expiry dates.
They also require a refundable up-front security payment (initial margin) and subsequent variation margin adjustments.