nikkei 225 yen contract on the CME
nikkei 225 yen contract on the CME
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uday · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: uday
Original post: https://quant.stackexchange.com/questions/22469
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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This may be a silly question on futures trading, but I haven't found a clear answer on the CME website.
For the
Nikkei 225 Yen contract on the CME
, which is denominated in Yen, the margin is also given in terms of Yen, e.g. currently it is
450,000 JPY
.
I trade this contract via a broker, for example Interactive Brokers (IB) or etrade or any broker offering futures, and also suppose I have a USD base account.
How do a brokers in the US (such as IB or etrade, etc.) take the margin paid my account? Do they convert some of the USD into JPY and then retain it as margin?
Subsequently, if I had a profit, will they give me back JPY or will they convert it into USD?
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FernandoG · External communityPost link
External answer — Quantitative Finance Stack Exchange
Author: FernandoG
Original post: https://quant.stackexchange.com/a/22472
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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I cannot say how every broker will do it, but from personal experience:
They will ask you for an amount in USD, that its to be calculated using their fx pricing and future valuation. Any margin requirement will be asked in USD and payed in USD.
Best Regards
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Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: uday Source score (net votes, not local likes): 1 Original post: https://quant.stackexchange.com/questions/22469 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. This may be a silly question on futures trading, but I haven't found a clear answer on the CME website. For the Nikkei 225 Yen contract on the CME , which is denominated in Yen, the margin is also given in terms of Yen, e.g. currently it is 450,000 JPY . I trade this contract via a broker, for example Interactive Brokers (IB) or etrade or any broker offering futures, and also suppose I have a USD base account. How do a brokers in the US (such as IB or etrade, etc.) take the margin paid my account? Do they convert some of the USD into JPY and then retain it as margin? Subsequently, if I had a profit, will they give me back JPY or will they convert it into USD?
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