Multiple choice general knowledge

Futures trading gains credited to a customer's margin account can be withdrawn by the customer:

  1. as soon as the funds are credited.

  2. only after the futures position is liquidated.

  3. only after the account is closed.

  4. at the end of the month.

  5. at the end of the year.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Futures accounts are marked-to-market daily, with gains and losses credited or debited immediately. Gains increase the account balance and can be withdrawn by the customer right away without needing to close the position or wait for any period. This is different from stock margin accounts where withdrawal timing may differ.

Keep practicing — related questions