I'm not a 100% on when a margin call is on a group of future contracts... The contract attributes were:

Initial Performance Bond: $1,980
Maintenance Performance Bond: $1,800
Contract size: 12,500,000 ¥
Future Foward Rate: $110.10

I needed to hedge ¥1,760,850,300 so therefore the number of contracts are 141(1760850300/12500000=141 contracts) which converted to USD is $16008174.38 .

The initial performance margin is $ 253,800 so a margin call would occur at when the account hits or falls below

$15,754,374.38, correct?

Attached below is a screenshot of my current chart for the past week if that helps a bit more.

Chart of Yen

  • 1
    $\begingroup$ I have only heard the terms initial margin and maintenance margin. I have never heard of initial 'performance' margin or maintenance 'performance' margin. The initial margin is the amount of liquidity required in the account to establish a new futures position, the maintenance margin is the amount of liquidity required to maintain the existing futures position. $\endgroup$ – Attack68 Mar 29 at 5:34
  • $\begingroup$ @Attack68 so I'm correct with assuming that a margin call isn't called because the position has not fell $253,000? $\endgroup$ – Skurpiel Mar 29 at 15:57
  • $\begingroup$ Something looks strange. Did you really have 16 million USD in the account on 3/25? If so you are very well margined and are not going to hit the maintenance level of 253,000 for a long time (maybe never). With 16 million on deposit you could easily carry thousands of contracts. $\endgroup$ – noob2 Mar 29 at 20:36

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