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Is the margin requirement calculated on the "Contracted Price" throughout the tenure or the "Closing Price" as on that day?


Tanishque Kumar

Tanishque Kumar

CA Final

0

14-Jan-22

40

Answers (1)

Best Answer

Contract value on day zero. after that the contract value changes as futures price keeps changing . From a practical real life perspective it is calculated on areal time basis every instant on the changing price of the future contract and if there is a shortfall, margin calls are made immediately.but for exam perspective u can say that margin is computed at day end on closing price of the specific maturity future contract


Sriram Somayajula

Sriram Somayajula

Admin

14-Jan-22

50K forums
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