Questions about Margin in the Futures
Questions about Margin in the Futures
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huab · External communityPost link
External question — Personal Finance Stack Exchange
Author: huab
Original post: https://money.stackexchange.com/questions/141224
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
(I'm beginner)
1- Can I buy/pay the whole contract price without margin (the broker will have no risk at all then- no need for maintenace margin) ?
2- Is this borrowing money so I need to pay interest and regular fees? if not; What does the broker benefit from it?
3- Is the margin calls money I pay unrecovered so I lose money every margin call?
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Fattie · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Fattie
Original post: https://money.stackexchange.com/a/141255
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Once you take a contract position, you can
win
or
lose
generally an
infinite
amount of money. The price you pay to get in to the contract has nothing to do with anything. Once you are in the contract, you can
win
or
lose
generally an
infinite
amount of money. Margin sits there to cover you when you lose.
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Quoted from Forex.com.bd-Editorial External answer — Personal Finance Stack Exchange Author: Fattie Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/a/141255 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Once you take a contract position, you can win or lose generally an infinite amount of money. The price you pay to get in to the contract has nothing to do with anything. Once you are in the contract, you can win or lose generally an infinite amount of money. Margin sits there to cover you when you lose.
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