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Futures Margins: CNBC Explains

CNBC Explains
Thursday, 16 Jun 2011 | 9:48 AM ET
Futures Margins: CNBC Explains
Margin accounts are a big part of buying and selling futures contracts, which allow buyers and sellers to protect themselves against price volatility. How do these margin accounts work, and how are they used? Salman Khan of the Khan Academy demonstrates.

Margin accounts are a big part of buying and selling futures contracts, which allow buyers and sellers to protect themselves against price volatility. How do these margin accounts work, and how are they used? Salman Khan of the Khan Academy demonstrates the reasons for the existence of margin accounts for futures contracts.

From this video, you’ll understand:

  • Why margin accounts are used for futures contracts
  • How market participants use margins for futures
  • Why an exchange uses futures margins

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