Examveda

In a derivative transaction, the term margin denotes to which one of the following?

A. Cash or collateral provided by a customer to a broker to protect the broker from loss on a contract

B. Cash or collateral provided by a broker to a customer to protect the customer from loss on contract

C. A broker's request for more collateral to bring a customer's margin requirement to a premium margin level

D. A customer's request for more collateral to bring a broker's margin requirement to a minimum standard level

Answer: Option A


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