Help with margin account

[Franjey]

Hi @David Harper CFA FRM. I have been a follower for a long time now, appreciate all your assistance.

In march 2017 I bought 1 million dollars through 4 month futures at an initial price of 16.50 pesos. The initial margin is 2 pesos per dollar and the maintenance margin is 1 peso per dollar. The future price related to the contract evolved as follow:

1. - end of april: 16 pesos
2. - end of may: 15,49 pesos
3. - end of june: 15 pesos
4. - end of july: 14,50 pesos

Assuming the settlement is monthly, and not daily. What would be the sequential payments that I would need to make, or receive, under the following scenario?

 

[PRITHWI]

april - 0
may - 1,010,000 to be paid
june - 0
july - 0

 

[gprisby]

april - 0
may - 1,010,000 to be paid
june - 0
july - 0

Agree!

 

[David Harper CFA FRM]

Hi @Franjey Thank you for the kind words, I agree with @PRITHWI and @gprisby. See below, i also get a margin call of MXN 1,010,000 to be paid (note that's a margin call in Pesos of course, per the specification of the maintenance margin and the general USDMXN format assumed here where MXN is the quote and USD is the base). I hope that's helpful!