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Colin: While margin for stocks directly relates to value, no such direct
relationship exists for futures. The term "margin" as used in futures is a
misnomer- -good faith deposit is more accurate and its purpose is to address
risk concerns. Therefore, I can't see how a cash flow relationship can be
established for futures as it can for stocks.
Regards, Jack.
----- Original Message -----
From: "cwest" <cwest@xxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Tuesday, October 07, 2003 10:53 AM
Subject: Emini mark-to-market
> Interested to hear some points of view about marking to market an Emini
> in cashflow terms.
>
> With stocks, as you know margin is 50% of price*qty if long and 150% of
> price*qty if short. The difference between those calculations from day
> to day reflects net change in value and the profit or loss in a
> position. How would you arrive at the same amount of margin required for
> an Emini that also reflects a cashflow amount that can be used to
> calculate profits?
>
> Colin West
>
>
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