As we delve into the world of futures, it is crucial to understand the concept of Customer Margin. This term refers to the monetary assurance needed from individuals purchasing or selling futures contracts, as well as those selling options contracts. Essentially, it serves as a safeguard to ensure that all contractual obligations are met. Without this financial guarantee, the futures industry would be vulnerable to potential defaults. Thus, understanding Customer Margin is crucial in navigating the complex world of finance.
