Exercise on understanding the flow of Margin Let's say two speculators-one bullish and one bearish- elect to take opposite positions in March crude oil at $77 per barrel. Both maintain accounts at brokerages that allow them to trade on exchange minimum margins. Both would be required to put up the $4725 performance bond to open their positions. Traders are aware that the exchange also set $3500 as the maintenance requirement for their contracts. That means that up to $1225 ($4725-$3500) in losses could be sustained before a maintenance call is issued. This translates into price change of $1.22 per barrel, as minimum lot is 1000 barrels. Any adverse price movement in excess of $1.22 per barrel will put one of into margin call territory. Activity: Calculate what happens if March crude oil rises to $78.36