n NISM Certifications
XIII NISM Series XIII
Medium

What is the primary purpose of the 'Margin' in futures trading?

Practice question from NISM Series XIII for SIF - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To increase leverage

  2. To guarantee performance of the contract

    Correct answer

  3. C

    To pay for commissions

  4. D

    To cover transaction costs

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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