Questions tagged [margin]
The margin tag has no usage guidance.
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Do perpetual futures have initial and variation margins?
When trading perpetual futures (for example, on crypto), do the concepts of initial and variation margins take place?
I'll expand on my point:
Perpetual futures without leverage. For example, we want ...
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Clarification of a term used in margin management by top counterparties
I am doing some primary research on margin management for different global counterparties and have come across the paper "The European central counterparty (CCP) ecosystem" by Armakolla et ...
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Bitcoin sell call options margin
I would like to know why on Deribit the margin requirements for selling call options is so much higher than selling futures.
It’s only about liquidity or there are other reasons?
I guess there are ...
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Where can I find OCC TIMS methodology?
I searched the web, but could not find OCC TIMS methodology detailed description anywhere. Any ideas?
OCC TIMS
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How to apply a funded equity collar to illiquid stocks?
I investigate a specific case of the funded equity collar [1].
Let's assume that counterparty $A$ already has a stake in share $XYZ$ and wants to get funding out of it from a bank $B$, which does not ...
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How the margining system worked in this situation?
In Section 2.5 of Options, Futures, and Other Derivatives (8th edition), there is a paragraph discussing the credit risk associated with the operation of margins:
The whole purpose of the margining ...
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how does margin affect the Option Price when Selling an Option
Currently I'm thinking the effect of margin. When selling an option, you need to pay margin everyday and mark to market. In most exchanges, margin is overcollateralized. But when buying a option, you ...
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What does M mean in DI Deposit futures contract?
I am trying to understand the forumla for DI1 Brazilian deposit future contract. I am able to figure out everything except M in the following formula:
Xt=N×M×(Pt−Pt−1Ft)
Lets say if we want to ...
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Operating Leverage Interpretation
Operating Leverage is the ratio of Contribution margin and operating income(proxy of profit).
So, Operating Leverage = [Sales-Variable Cost]/[Profit] = Quantity*(Price-AVC)/Profit
Many literature ...
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Question about Pattern Day Trading
According to the FINRA, the rules permit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day. So if you have \$...
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price alignment interest on future contract
why this is no PAI (price alignment interest) on a future contact like cleared swaps have?
Am I right that you may get interest from your margin account, but you do not need to pay the interest back ...
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Best way to lock in margin rate via hedging
I'm currently paying a 1.25% margin rate. This rate is based on the Fed Funds rate plus a margin. I would like to hedge against the possibility of this margin rate increasing. What is the best/...
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Operational aspects of repo funding trades
It is widely known that repurchase agreements ("repos") are regularly used by market participants as a mean to fund long/short positions in a certain asset, in particular for derivative ...
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What is an industry standard to value FX Forwards with margining?
I could not find any reference on market standard approaches to value FX Forward with margining options. Is computing the present value of FX Forward with spot, swap margin is so trivial?
My ...
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Computing cost for crypto futures trades
I'm trying to replicate the cost of cryptofutures trade without success. Here are the inputs and the cost i got:
Quantity: 1 BTC
Mark Price: 11732.72 USD
Leverage:20
Margin Percentage: 2.5%
THE COST: ...
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