1. Although there are initial and maintenance margin requirements for buying stocks and bonds on margin, the concept of margin differs for futures. When securities are bought on margin, the difference between the price of the security and the initial margin is borrowed from the broker. The security purchased serves as collateral for the loan and interest is paid by the investor. For futures contracts, the initial margin, in effect, serves as good-faith money, indicating that the investor will satisfy the obligation of the contract. No money is borrowed by the purchaser. Similarly, the seller of futures borrows neither money nor securities.