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Futures daily mark to market/settlement and margin accounts

  • Last Updated:
  • May 6th, 2020 2:32 pm
[OP]
Newbie
May 23, 2017
7 posts

Futures daily mark to market/settlement and margin accounts

Say you entered into a contract for emini SPY futures on day 1, at price X, and the underlying (SPY) is trading at Y. On day 2 the futures contract you entered into settles at Z and SPY settles at K. The adjustment to the margin account is X-Z, correct?
3 replies
Banned
Mar 24, 2020
99 posts
72 upvotes
It’s called MES not spy.
Margin changes before end of days . There are difference margin requirements over night
And can change throughout the day.... u can technically be margin called same day if value fell

Go to your brokers website and check margin requirement

Based on your level of questions do not trade futures
[OP]
Newbie
May 23, 2017
7 posts
How does closing out a futures position work?

Say you enter into a long futures contract. In order to close out the long futures contract you enter into a short futures contract for the same underlying/strike price/delivery date sometime before the last trading day of the futures contract.

By entering into the short contract (to sell the underlying) you have apparently been relieved of the obligations of the long contract (to buy the underlying). Why is this so? I mean there is someone on the other end of each of the long contract, so how does entering into the short contract relieve you of fulfilling your obligations on the long contract?

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