A trader enters into a short futures contract to sell April Silver for ₹48,000 per kilogram on the MCX. The size of each contract is 5 kilogram. The initial margin is ₹25,000 and the maintenance margin is ₹20,000. Comput

Answer 5(b) There will be a margin call when the difference between the initial margin and the maintenance margin i.e. ₹25,000 - ₹20,000 = ₹5,000 is the loss from that account. So a change of ₹5,000 / 5 kg = ₹1,000 per kilogram of future will make a margin call. When the price of silver futures goes above ₹48,000 (initial contract price) + ₹1,000 (change for margin call) = ₹49,000, the trader would be asked to deposit the margin amount.