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Commodity Futures Contract Margin Call Formula

July 19, 2012
  • IM = Initial Margin Amount
  • MM = Maintenance Margin Amount
  • F0 = Initial Value
  • Ft = Future Value
  • X = Units of Commodity
  • (Ft – F0)X = IM – MM

Solve for missing term, usually Ft, aka the margin call price.

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From → Asset Valuation

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