Question
Assume todays settlement price on a CME CDN (Canadian dollar) futures contract is US$0.9410/C$. You have a SHOR T position in one contract. Your margin
Assume todays settlement price on a CME CDN (Canadian dollar) futures contract is US$0.9410/C$. You have a SHORT position in one contract. Your margin account currently has a balance of US$1,700.
The next three days settlement prices are:
Day 1: US$0.9386
Day 2: US$0.9393
Day 3: US$0.9309.
The contract size of a Canadian dollar futures contract is C$100,000.
- Calculate the changes in the margin account from daily marking-to-market and the balance of the margin account after the third day.
Changes after Day 1:
Changes after Day 2:
Changes after Day 3:
Balance of Margin account end of Day 3:
- Repeat the problem assuming you have a LONG position in the futures contract
Changes after Day 1:
Changes after Day 2:
Changes after Day 3:
Balance of Margin account end of Day 3:
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The Forex Trading Manual The Rules Based Approach To Making Money Trading Currencies
Authors: Javier H. Paz
1st Edition
0071782923,0071782931
