Suppose that I want to calculate what the margin requirements should be for a Bitcoin futures contract, where the contract is the USD/BTC exchange rate (settled in Bitcoins).
I've looked at the SPAN method and a paper on calculating margin. The SPAN model seems kinda complicated and I can't really wrap my head around it and I'm not sure if the model described in the paper is actually used in a real exchange.
I'm not sure how much of a stretch this would be, but could somebody demonstrate how the margin calculation would work for a Bitcoin futures contract? Or at least provide a some guidance on how to calculate the margin requirements.