Question

On January 1, you enter a long gold futures contract at the settle price of 1250/oz. Each gold contract is for 100 ounces. The minimum margin requirement is $5500, and the maintenance margin requirement is $4500. Given the futures settle prices below, what amount of margin is in your account at the market close on January 4th. Assume you keep the contract active through the four days and do not take any excess margin out of the account. January 2: 1233/oz January 3: 1240/oz January 4: 1262/oz

Answer 1

Day	Settlement price per ounce	Mark-to-Market	Other Entries	Account Balance	Explanation for other entries
1	$                 1,250.00	$       1,25,000	$         5,500	$             5,500	Initial Margin Deposit
2	$                 1,233.00	$       1,23,300	$            700	$             4,500	Margin call
3	$                 1,240.00	$       1,24,000		$             5,200
4	$                 1,262.00	$       1,26,200		$             7,400
Margin in the account at close on January 4			$             7,400