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.
b) By open negotiation between you and the trade counterpart.
• c) According to general rules established by the futures exchange.
  Yes. Note, however, that the exchange only provides rules for the minimum margin, brokers are free to require higher margins from their customers. Continue

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