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| » Contracts » Contract specification |
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Contracts » Contract specification
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| Unit of Trading/ Contract size |
This gives you a precise definition of the quantity and quality of the instrument to be bought or sold |
| Settlement Months & Settlement Days |
A futures contract consists of monthly cycles when settlement will occur. Contractual obligations of the contract must be met on the given day. In practice, most futures contracts are "closed out" during settlement day. |
| Last Trading Day |
This is the day when trading in a particular contract will stop. |
| Quotation / Tick size & value |
The quotation specifies how a price is quoted. A "tick" represents the smallest amount a price can change. |
| Exchange Settlement Price (ESP) |
This is calculated to confirm the final value at a fixed time on the last trading day. |
| Initial margin |
Margin requirements are funds or collateral that must be lodged with your broker in order to meet any obligations under the terms of the contract. This margin is known to initiate trade execution. |
| Maintenance Margin |
Mentioned amount as maintenance margin must be kept on account of client. Maintenance margin exactly reflects to trader that within that much of limit fluctuation is allowed. This margin is known that to maintain in market to hold position. |
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