What is the difference between initial margin and variation margin of a futures contract? Provide a simple

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What is the difference between initial margin and variation margin of a futures contract? Provide a simple example to explain your answer.

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:14 AM

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What is the difference between initial margin and variation margin of a futures contract? Provide a simple

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To trade futures you must open a margin account with your broker Before opening a futures position y...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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