Question on Futures Contract

Can you help in answering the following question from schweser’s Q-Bank? Which of the following statements best describes marking-to-market of a futures contract? At the: A) end of the day, the maintenance margin is increased for traders who lost and decreased for traders who gained. B) end of the day, the gains or losses are tallied to the trader’s account. C) conclusion of each trade, the gains or losses from all previous trades in the futures contract are tallied. D) maturity of the futures contract, the gains or losses are tallied to the trader’s account.


Yes, B is correct. why not A? Is it because maintenance margin remains the same, the margin balance increases or decreases based on asset price?

Yes B. Correct. Because maintenance margin remains the same while the margin balance changes with asset price.

Yes the correct answer is B. as adb258 mentioned the maintenance margin does not fluctuate.

Confirm, it’s B. The only time where margin can get quirky is if you have a margin call. In that case, you must restore the account to the initial margin, not the maintenance margin. I believe the term for this is variation margin.