New answers tagged derivatives
3
The basic difference is that CFDs are over-the-counter products and SSF are exchange listed products.
This does not, however, hold entirely true anymore as some CFDs are listed (example, http://www.asx.com.au/products/asx-listed-cfds.htm ).
But the historical reason for CFD's origin was that over-the-counter products could provide more leverage and such ...
0
Keyword SPAN and the summarized answer is that it sets margin requirements as a function of risk/volatility. CME and other exchanges also function as clearers and thus they have an interest that market participants who clear with CME remain solvent. The exchange runs stress tests and determines a reasonable amount of performance bond that has to be deposited ...
4
Just take something like
$$
\frac{\log{\frac{F_j}{F_i}}}{t_j - t_i} * 365
$$
where $t_i$ denotes the expiry (or alternatively delivery) date of future $i$. The annualization is so you can compare different futures.
Top 50 recent answers are included
