All Questions
Tagged with margin derivatives
6
questions
1
vote
1
answer
232
views
Margin accounts and futures delivery
I'm trying to understand the market mechanics of futures with delivery. For sake of example, assume 0 interest rates and no cost of carry, and that I bought a futures contract on Jan 1 with Feb 1 ...
- 176
1
vote
3
answers
690
views
Who gets the margin call when a bear ETF goes down
When I short the SPY, if it goes up, then I get a margin call based on broker's margin requirements. (Not sure if margin requirements are specified by SEC or individual broker, but that is another ...
- 16k
2
votes
1
answer
4k
views
Calculating Daily Returns for Futures Contract
I am calculating daily returns for a position in a futures contract. I am a little stuck with margin and how to account for it. I specifically dont understand how return is calculated after Margin ...
- 21
2
votes
1
answer
2k
views
Who is the issuer in a derivative contract?
In the case of a bond or a share, there is a bondholder or a shareholder on one side and a company issuing the security on the other side. In a derivative contract, which party can be named as the ...
- 143
4
votes
3
answers
319
views
Margin when entered into a derivative contract
From Wikipedia
In finance, a margin is collateral that the holder of a financial
instrument has to deposit to cover some or all of the credit risk of
their counterparty (most often their broker ...
- 5,883
5
votes
1
answer
464
views
When entering a Futures contract, must the margin deposit be idle or can I profit from it?
Let's say I am trading in a Reg-T Margin account. When entering a Futures contract, a certain amount of cash is needed as collateral (usually 5%-15%). I'd like to see that collateral generate income ...
- 587