Money Calculations for Futures and Options

For futures, mark-to-market amounts are called settlement variation, and are banked in cash every day. We say that for futures, there is a daily cash mark-to-market. Settlement variation amounts are also called variation margin or simply variation. Note that the description herein applies to all products which are futures from a functional point of view, including some which may not be considered futures from a regulatory point of view.

Read Full Report