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You are trading a futures contract that requires an initial margin of 5% on the notional value of the future. What is the leverage that
- You are trading a futures contract that requires an initial margin of 5% on the notional value of the future. What is the leverage that your margin position is effectively controlling vs. the notional value?
- 5 times your margin amount
- 10 times your margin amount
- There is no leverage involved
- The leverage cannot be determined
- 20 times your margin amount
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