Discuss how the exchange requirements that mandate traders toput up collateral i

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Discuss how the exchange requirements that mandate traders toput up collateral in the form of a margin requirment and to usethis account to mark their profits or losses for the day serve toeliminate credit or default risk. Because (both parties have orneither party has ) to post margin when they enter into a futurescontract and because they mark to market ( on the delivery date orevery day until the delivery date) we are ( assured or not assured)the party and the counterparty to the contract have already postedthe gain or loss to the other and risk of default ( still exists oris theeby negated )

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