Forwards             Futures

Contract Terms     variable             standard
Delivery           expected             only 2-5%
Trading            via phone            centralised
Margins            negotiated           ........
Credit Risk        ........             ........
Liquidity          ........             ........
Cash Flow          ........             ........

How do you think the margin determined in a futures contract?

• a) By negotiation between you and your broker.
  No. Brokers can require higher margins than those prescribed by the exchange, but they cannot accept less.
  b) By open negotiation between you and the trade counterpart.
  c) According to general rules established by the futures exchange.

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