Hi,
Help me build a thread if anyone has time by posting easy problems in futures. Double entries can also help.
Ram bought oil futures anticipating a drop in price.
3 months futures delivey = 10 per barrel
Contract size = 100 barrels
TICK size = 1 paise per barrel
Initial margin = 10% of contract.
Buying = 10 contracts
Initial margin = 10% into 10 contracts into 100 barels into 10 inr barrel price = 1000inr.
Price increased by 1 rupee and the
Loss= 10 contracts into 100 ticks into (contract size 100 into 1 paise) = 1000 inr margin maintenance.
If you come across any other futures, post iy here.
Txs
CAclubindia
