Economics · Financial Markets
Novation, a key feature of futures exchanges, stipulates that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Futures contracts are traded in an open exchange
- 2The exchange becomes a counterparty for all trades✓
- 3Futures contracts delivery dates are standardized
- 4Credit risk is managed using an intricate system of margins
Correct answer
The exchange becomes a counterparty for all trades
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