Gold Futures contract: size= 100gms
Investor buys one December gold futures contract on 1 November at Rs.400/per gram
Value of contract: Rs. 400x100 gm= Rs.40, 000
Initial Margin: 10 per cent and Maintenance margin is 80 per cent of Initial margin
Calculate the MTM of Buyer’s Margin account and Sellers Margin Account

Day Closing price of gold/gm
Nov 1 400
Nov 2 403
Nov 3 398
Nov 4 390
Nov 5 392
Nov 6 387
Nov 7 394
Nov 8 401
Nov 9 405
Nov 10 410

Answer rating: 100% (QA)

The MTM MarktoMarket is the process of calculating the profit or loss on a futures contract position based on the current market price In this case we will calculate the MTM for both the Buyers Margin ... View the full answer