Start learning 50% faster. Sign in now
The price of the contract is Rs 120. The required initial margin is 120 @ 40% = Rs 48 Required Maintenance Margin is Rs 30. When the price goes down, margin money in the account will be taken in order to give to another party who stands to gain. When the price goes down to 110, the money remaining in the margin account will also come down by 10 i.e (48-10 = 38). But it is still above the limit of the maintenance margin balance. Therefore, when the price of the security goes down to 102, the margin balance will come down to 30 (38-8). Therefore, at 30 the cut-off for maintaining the maintenance margin is reached. Therefore, as per the rules, the investor will get a call for replenishing his margin account to make it to the original level i.e 48. The amount that needs to be brought in order to make it to an original level of initial margin is called variation margin So, at a 102 price, the investor will get a call for margin.
What is the difference between the monthly amount spent by Sumit on payment of various bills and the amounts spent by him on loan instalments?
Mr. Karma started a Coaching classes and for that he wanted to purchase 50 chairs for the classroom cost of which was Rs.200 each. The trader offered h...
A trader marks all his goods at 60% above the costs price and offers a discount of 15% on the marked price. What is the actual profit % on...
A book is listed at Rs. 1200 and the discount offered is 10%. What additional discount must be given to bring the net selling price to Rs. 900?
The price of a printer is marked at Rs 15000. If successive discounts of 10%, 20% and 25% allowed, then at what price does a customer buy it?
A watch dealer pays 10% customs duty on a watch which costs Rs.500 abroad. He desires to make a profit of 20% after giving a discount of 25% to the buye...
The amount spent to his family forms approximately what percent of his monthly savings?
A merchant marked the price of an article by increasing its production cost by 40%. Now he allows 20% discount and gets a profit of Rs. 48 after selling...
A Shopkeeper marks the price of a refrigerator at Rs. 30,000/- and gives a discount of 15%. He also gives a mixer grinder worth Rs. 1,500 free with the...
If a company sells a bikes with a marked price of Rs 3,50,000 and gives a discount of 3% on Rs 1,80,000 and 5% on the remaining amount of Rs 1,70,000, t...