Methodology for Future Commodity Trading . . .

In case any one wants to trade in any commodity, one can get enter into future contracts for 1,2,3 or more months. One has to deposit the initial margin based on the exposure required. The mark-to mark loss on the out standing position is to be setteled on daily basis by paying or receiving loss/profit. The initial margin is generally fixed on the basis of margin required by the exchange and also after taking into account the probable component of mark to mark loss in next 2 days. If any contract is not settled till the final contract expiry date, the contract will have to be settled by physical delivery through the exchange.