Series 3: 1.3.4.4.3. The Settlement Process

Taken from our Series 3 Online Guide

1.3.4.4.3. The Settlement Process

In futures contracts, trade settlement does not begin and end with a single payment. Rather, a contract is settled daily until the contract terminates. Once a trade is matched and cleared, the price is set and the clearing firm deposits the initial margin into its clearinghouse account. At the close of the trading day, the clearinghouse

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