How Does the Margin Requirement Change as a Contract Approaches Expiration? ▴ Learn

How Does the Margin Requirement Change as a Contract Approaches Expiration?

Margin requirements may increase as a contract approaches expiration, especially if the contract is physically settled. This is due to the increased risk of price volatility during the final settlement period and the risk associated with physical delivery logistics.

For cash-settled contracts, the change may be less pronounced.

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