Futures thread

Hey Yasaswi! That’s a solid start for a futures thread — easy problems with clear numbers really help people get the concept.

Here’s a cleaned-up version of your example, plus a few extra simple ones with double entries to keep it practical for learners:

🛢️ Example 1: Ram buys Oil Futures

• Futures price: ₹10 per barrel

• Contract size: 100 barrels

• Tick size: 1 paise (₹0.01) per barrel

• Initial margin: 10%

• Contracts bought: 10

Calculate initial margin:

• Price per contract = 100 barrels × ₹10 = ₹1,000

• Total for 10 contracts = ₹1,000 × 10 = ₹10,000

• Initial margin (10%) = ₹1,000

Price moves up by ₹1 (from ₹10 to ₹11):

• Loss per barrel = ₹1

• Loss per contract = 100 barrels × ₹1 = ₹100

• Loss on 10 contracts = ₹100 × 10 = ₹1,000

Accounting entries:

🔄 Example 2: Priya sells Gold Futures

• Futures price: ₹50,000 per 10 grams

• Contract size: 100 grams (10 lots)

• Tick size: ₹10 per 10 grams

• Initial margin: 8%

• Contracts sold: 5

Calculate initial margin:

• Price per contract = ₹50,000 × 10 = ₹500,000

• For 5 contracts = ₹500,000 × 5 = ₹2,500,000

• Initial margin (8%) = ₹200,000

Price falls by ₹500 per 10 grams (₹5000 per 100 grams):

• Gain per contract = 100 grams × ₹500 = ₹5,000

• Gain on 5 contracts = ₹5,000 × 5 = ₹25,000

Accounting entries:

📝 Tips for your thread:

• Start each problem with given data and a simple question.

• Show clear step-by-step margin and P&L calculations.

• Include journal entries for each event (initial margin, daily MTM gain/loss, margin call).

• Use real-life examples like commodities, indices, or currency futures.

• Encourage people to post their problems or doubts to keep the thread interactive.