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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Margin Requirement
Sir,
Initial Margin = 3500 per contract
say 20 contracts = 70000
no end of each day futures values:
1.1233
1.1243
1.1272
1.1211
initital futures price is 1.1011
Sir, these are just hypothetical numbers. My question is, do we always follow the same pattern of calculation for margin requirements regardless of if we are receiving or borrowing money?
in the above case, they calculated each days as:
1.1233-1.1011 *contracts * tick value
1.1243-1.1233
1.1272-1.1243
and so on.
thank you
Day by day the price of futures will change, and day by day the margin required is adjusted by any gain or loss that is currently being made.
So to get my understanding sir,
The calculation method doesn’t change then?
Thank you
No – it doesn’t 🙂