Start learning 50% faster. Sign in now
The price of the contract is Rs 120. The required initial margin is 120 @ 40% = Rs 48 Required Maintenance Margin is Rs 30. When the price goes down, margin money in the account will be taken in order to give to another party who stands to gain. When the price goes down to 110, the money remaining in the margin account will also come down by 10 i.e (48-10 = 38). But it is still above the limit of the maintenance margin balance. Therefore, when the price of the security goes down to 102, the margin balance will come down to 30 (38-8). Therefore, at 30 the cut-off for maintaining the maintenance margin is reached. Therefore, as per the rules, the investor will get a call for replenishing his margin account to make it to the original level i.e 48. The amount that needs to be brought in order to make it to an original level of initial margin is called variation margin So, at a 102 price, the investor will get a call for margin.
A person bought an article and sold it at a loss of 20%. If he had bought it at 10% less price and sold it for 7400 more, he would have gained 30%. Find...
The CP of a chair is Rs. 700 and the CP of a table is Rs. 900 and marked price of both the items is same. If 20% and 30% discount is given on chair and ...
A Shopkeeper gives 2 articles free on the purchase of every 10 articles. He also allows a discount of 20% to customer and still earn 25% profit. Find th...
A tradesman marks his goods 32% above the cost price and allows his customers 10% reduction on their bills. What percentage profit does he make?
The ratio of cost price to marked price of a rice bag is 7:8 and the Marchant gets a profit of Rs.80 by selling the rice bag at Rs. 500. Then, what will...
A bought an article at 20% less of the marked price and sold it at 12% more than the marked price. Find the profit earned by him.
Profit percentage received on a product when sold for Rs. 300 is equal to the percentage loss incurred when the same product is sold for Rs. 220. Find t...
A shopkeeper bought two articles for Rs. 500 each. If he sold one of them at 40% profit and the other at 25% loss, then find the difference between the ...
Asmita owns two burgers, 'Veg' and 'Non-veg.' The Veg Burger was priced 140% above its cost, while the Non-Veg Burger was sold at a 40% loss. The total ...
A shopkeeper sells an item at a profit of 25% and dishonestly uses a weight that is 30% less than the actual weight. Find his total profit%.