The ‘initial margin’ is the minimum amount of capital the investor needs in his or her account to trade futures contracts, while the ‘maintenance margin’ is the subsequent capital amount he or she must contribute to the account to maintain the minimum margin requirements. Nasdaq’s Glossary ...
A broker requires aninitial marginand amaintenance margin. Should the bond futures position decline sufficiently in value, the broker might issue amargin call, which is a demand for additional funds to be deposited.1 Futures margin differs from securities margin. In futures trading, margin is the...
A company enters into a short futures contract to sell 5,000 bushels of wheat for 250 cents per bushel.The initial margin is $3,000 and the maintenance margin is $2,000.What price change would lead to a margin call?Under what circumstances could $1,500 be withdrawn from the margin ...
There are twotypes of margin calls: initial and maintenance. A margin call occurs if your account falls below the maintenance margin amount. A margin call is a demand from your brokerage for you to add money to your account or close out positions to bring your account back to the required ...
This is $2,000 below the maintenance margin and will result in a margin call from your broker. To retain the positions, you need to increase your account balance by $3,200 to bring it back up to the $13,200 initial margin. Alternatively, you could close one of your positions so that...
1. Initial minimum: This is an initial balance that you’ll need to deposit into a margin account to purchase securities with a loan. It is usually at least $2,000 and needs to initially cover 50% of the total costs of the trade you want to make. 2. Margin maintenance requirement: ...
题目:A trader has a long position in a wheat future contract: The initial margin is $ 5000. The maintenance margin is $ 3750. There are 5000 bushels in each wheat contract. On July 10, the price is $ 2.00 per bushel. What is the price at which the trader will receive a maintenance...
Building a margin trading strategy that acknowledges your risk tolerance. Establish a limit for your acceptable losses and consider adjusting the maintenance margin as it suits your needs. If you’ve weighed the positives and risks of trading on margin and consider yourself ready to invest, Ally ...
Here is a more in-depth explanation of what each of these components means: Product price: This includes the total cost of sourcing the raw materials and manufacturing the product, plus the seller’s profit margin, i.e., the final price sold to consumers. Freight costs: This encompasses ...
Padding is the space between content and border, which is the next component of the box. Border is a visible or invisible line around the edge of the box. Margin is the outer space around the box. For better visibility, let’s look at the picture below, which gives a general presentat...