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Daily changes in futures prices means one party (hedger or speculator) has gained while another lost money on the contract. How are the exchanges able
Daily changes in futures prices means one party (hedger or speculator) has gained while another lost money on the contract. How are the exchanges able to keep the "daily" loser in the contract and prevent default?
by the threat of bankruptcy | ||
by guarantees by third parties | ||
by loans | ||
by daily margin calls if needed |
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