CFA CFA Level 1 New confusion about Margin Calls!

New confusion about Margin Calls!

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    • Avatar of Dr_Pain28Dr_Pain28
      Participant
        • CFA Level 2
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        With equities you only need to keep the account at the maintenance margin, but with futures etc. if the account drops below the maintenance margin you need to bring it back to the initial margin again.

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        The only difference question wise is that when referring to equities most of the questions will refer to margin call price or total return given prices, with the derivs questions most of them have give you the amount of funds you have to place and the minimum $ amount of maintenance margin to have in your account; with these you need to be cognizant of the amount of contracts in the account and the multiplier of the contract. Most questions will ask about how much $ wise to bring back. Also, pay attention to whether they’re short the contracts and/or have a reserve fund

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        Thanks a lot… I was doing Alternatives / Derivatives a lot recently and got totally confused when this question popped up 🙂

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