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11/05/2019

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On this vein, the futures exchange requires both events to place up initial cash, or a efficiency bond, often called the margin Margins, generally set as a percentage of the worth of the futures contract, should be maintained all through the lifetime of the contract to guarantee the settlement, as over this time the price of the contract can fluctuate as a function of provide and demand, causing one side of the exchange to lose cash at the expense of the opposite.