Zoho Sheet


Contract Size (ounces)					100
Contracts (number)					2
Ounces under contract					200
Initial futures price					$600

Margin				Per	Total
Initial margin				$2,000	$4,000
Maintenance margin				$1,500	$3,000

		Daily	Cum'l	Margin
	Futures	gain	gain	Account	Margin
	Price	(loss)	(loss)	Balance	call	Notes:
	$600.00			$4,000		Exchange sets minimum levels for initial and maintenance margins
5-Jun	$597.00	($600)	($600)	$3,400	$0	The margin account is volatile: cash in excess of margin can be withdrawn
6-Jun	$596.10	($180)	($780)	$3,220	$0	This daily market-to-market creates CONVEXITY BIAS vis-à-vis forward contracts
7-Jun	$598.20	$420	($360)	$3,640	$0	Breach of maintenance margin requires MARGIN CALL: VARIATION MARGIN required to TOP UP TO INITIAL MARGIN
8-Jun	$597.10	($220)	($580)	$3,420	$0
9-Jun	$596.70	($80)	($660)	$3,340	$0
10-Jun	$595.40	($260)	($920)	$3,080	$0
11-Jun	$593.30	($420)	($1,340)	$2,660	$1,340
12-Jun	$593.60	$60	($1,280)	$4,060	$0
13-Jun	$591.80	($360)	($1,640)	$3,700	$0
14-Jun	$592.70	$180	($1,460)	$3,880	$0
15-Jun	$587.00	($1,140)	($2,600)	$2,740	$1,260
16-Jun	$587.00	$0	($2,600)	$4,000	$0
17-Jun	$588.10	$220	($2,380)	$4,220	$0
18-Jun	$588.70	$120	($2,260)	$4,340	$0
19-Jun	$591.00	$460	($1,800)	$4,800	$0
20-Jun	$592.30	$260	($1,540)	$5,060	$0

Dailiy Margin Hull Table 2_1