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IN THIS SECTION:
You Must Know | Day 1| Day 2 | Day 3 | Profit/Loss Summary
Futures Margining System Example: A Hypothetical Gold Futures Contract
Day 1
Investor buys one gold futures contract at $400/oz.
(contract value = 100 oz. X $400/oz. = $40,000)
| Investor deposits initial margin |
$2,500 |
Price closes at $393/oz.; investor loss of $7/oz.
($700 per contract) paid to clearinghouse |
- $700 |
| Account balance at end of Day 1 |
$1,800 |
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