You are trading a centain futures you purchased 2 contracts, Ask an Expert

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You are trading a centain futures. You purchased 2 contracts today. The purchase price of the futures per one contract was $75. The contract size of the futures per contract is 200. The initial margin requirement is $5,000 per contract for the futures. Hence, you just deposited initial margin requirements. The maintenance margin for the $2,500 per contract. Suppose, next day, the price of the futures declined to $70. What happened to your margin account?

Nothing happen. He does not have to do anything about his margin account.

He has to deposit extra money to satisfy the maintenance margin.

He has to deposit extra money to satisfy the initial margin.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91804867

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