When does a futures trader receive a margin call?A.When the trader's margin account drops...

When does a futures trader receive a margin call?

	A.	When the trader's margin account drops below the initial margin value
	B.	When the trader's margin account drops below the maintenance margin value
	C.	When the trader's total open positions exceed the position limit
	D.	All of the above conditions will result in a margin call

Expert Solution

Initial Margin:

The parties to future's contract shall be deposited with stock exchange as security deposit. It will adjusted for day to day changes.

Maintenance Margin:

Once the amount in Margin account falls below the Maintenance margin, Margin account shall be reinstated to Intial Margin amount.

hence Option B is correct.

jeff jeffy answered 2 years ago

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