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Postby bhuyanpk » Mon Sep 14, 2015 11:27 am

how everyday futures Spot prices is calculated? Based on which Mar to market calculation is arrived at


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Re: Derivatives-I

Postby edupristine » Tue Sep 15, 2015 12:18 pm

For Example: You have $10000 in your trading account for the day. Your broker is providing you 40% margin on it. So you can trade for $40000(10000*4) for that day. You are having $42000 at the end of the day in your trading account, you are gaining $2000. This concept is called Mark to market. Your new account Balance will be $12000. So you can trade for $12000 * 4 =$48000 on the next day.

Spot rate is actually calculated in Bonds using Bootstrapping. Please provide us specific question so that we can help you with the complete solution.

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