easy · FRM Part 1 Financial Markets and Products
In an exchange-traded gold futures contract, if the account balance falls below the 'Maintenance Margin' level, what must the trader do?
- Deposit enough variation margin to restore the account to the Initial Margin level.
- Close the position immediately and realize the loss without any further payment.
- Wait for the price to recover so the balance naturally rises above the maintenance level.
- Deposit just enough to bring the balance back to the Maintenance Margin level.
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