Futures thread

Finance

3328 Points Posted on 28 November 2022

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

Replies (1)

Finance/Compliance Consultant

66876 Points Posted on 14 August 2025

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:

Calculate initial margin:

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

Accounting entries:

Transaction	Debit (₹)	Credit (₹)	Explanation
Initial margin paid	Margin A/c	Bank A/c	Paid initial margin
Mark-to-market loss	Loss A/c	Margin A/c	Loss due to price increase
(If margin maintenance called)	Bank A/c	Margin A/c	Paid additional margin

Calculate initial margin:

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

Accounting entries:

Transaction	Debit (₹)	Credit (₹)	Explanation
Initial margin paid	Margin A/c	Bank A/c	Paid initial margin
Mark-to-market gain	Margin A/c	Gain A/c	Profit due to price drop
(Withdraw margin gain)	Bank A/c	Margin A/c	Withdraw margin gain

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.

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