Which of the following statements about futures markets is least accurate?
A) Hedgers trade to reduce the risk of their exposure to the market.
B) The clearinghouse guarantees performance of the buyer and seller.
C) If the account rises in value, the trader must deposit the variation margin.
D) If the account falls in value, the trader must deposit the variation margin.
Reveal Answer
C) If the account rises in value, the trader must deposit the variation margin.
What is the Capital Markets Professional Certificate?
This introductory program offers a comprehensive survey of capital markets. Money and banking, the role of central banks and the evolving regulatory landscape are reviewed. The program also provides a thorough grounding in the full range of capital market instruments.
