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    Eight contracts of Euro currency futures

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    You buy eight contracts of Euro currency futures (i.e. total of one million Euros) with an
    initial margin of $2835 per contract. You buy the contracts at $1.3468/Euro and after a few
    days of trading the contracts end at a price of $1.3534/Euro with the following ending price
    each day: $1.3465, $1.3443, $1.3434 and $1.3534. What would be the margin account value
    per day? [Starting value being $22,680 (i.e. 8*2835 = $22,680)].

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    Solution Preview

    You buy eight contracts of Euro currency futures (i.e. total of one million Euros) with an
    initial margin of $2,835 per contract. You buy the contracts at $1.3468/Euro and after a few days of trading the contracts end at a price of $1.3534/Euro with the ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate what would be the margin account value per day.

    $2.19

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