FRM: Commodity futures margin accounts

A long futures contract gives leverage: in this example where gold is ~6% initial margin, the leverage is 1/6% or 16.6x. When the maintenance margin is breached, a MARGIN CALL requires the long to "top up" back to the INITIAL MARGIN. For more financial risk videos, visit our website! www.bionicturtle.com

[@geiko187]

very glad to see you're back David... love the videos!!!

[@bionicturtle]

@mous18 Thanks for liking: recording in Cam 7 and uploading in 16:9 .mp4 seems to be ideal. Sounds like the new plan!

[@dan11511dan]

Very well explained! Thank you !!

[@suleimanonimisiabdullahi6714]

Is Margin call is at initial margin level or at maintenance margin level? I thought margin call is required when the margin account falls below the maintenance margin level that's below $4,000. 🙏

[@bionicturtle]

@yookayman 1. Comex division of nymex; 2. because the balance is reduced to 6K: the long is committed to buy @ $1,000 but the price has moved down to $970, so if the position were closed that would be a loss of (970 - 1000)*200 ounces = $6,000. So the balance--i.e., after mark to market--is original $12K - $6 = $6.

[@lordvenom4419]

Sir what is MC BROKER

[@sucalsr123]

thank you for the clear explanation!

[@scottfreedom2012]

Is there a place to get an excel spreadsheet such as this that can be used for all futures contracts that can be customized? I want to customize it for intraday trading. Thanks.

[@iuliiashpak3551]

Excellent videos. Thanks a lot.

[@yookayman]

4:48 'I breached the maintenance margin as dictated by the exchange' - 1. Are Nymex the exchange? 2. Why does a 6K drop trigger a margin call when there's 12k in the margin account? Thanks.

[@user-if5ml7yf9d]

I've never traded futures, that's why I don't understand, why all these examples start with depositing initial margin. Shouldn't we firstly buy the futures as we do with all the other instruments and then deposit the margin? Or otherwise are they free and we don't have to "buy" futures?

[@kkbose]

thank you

[@traderlincolnmitchell9786]

good video

[@rdc323]

hull chapter 2

[@chiarapapi5469]

what if I have both a short and long positi ons in my portfolio? thks

[@evanskiunjuri8096]

what about contago and backwardation

[@Deshammanideep]

Find google sheet for above explanation here. docs.google.com/spreadsheets/d/1wZVMoWn5tr_IfUDZ3atBMqzcpviktpH4qHPl0JVWygI/edit?usp=sharing