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Sir can you tell me about the concept of margin that if we have a gain in mark to market so can we get that gain in the form cash or we can also increase our contracts from that gain if we choose not take the cash inexchange of the gain?
The margin is a deposit that has to be paid to the trader at the start of a futures deal and is returned at the end of the deal.
As the price of the future changes during the deal the user is required to increase or allowed to reduce the amount of the deposit.Sir I have written in exam that incase you have a gain on mark to market you can take that gain in cash or you can also increase your number of contract. So is this mistake a major or a minor mistake?
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