Chapter 8 page 4
can you explain on the term margin
I actually dont quite understand the example if the price of bond future drop the buyer experience loss,and why buyer was deducted the amount on the margin account and why is there a need to top it up ?
and why the increase amount in seller account could be removed by seller ?
Can you further explain on notional stock? Under bond future why say there is linkage between future and cash market?
How is the delivery of bond work by the way ?
and the party could choose which bond to deliver ? Why is this so?
can you explain on the term margin
I actually dont quite understand the example if the price of bond future drop the buyer experience loss,and why buyer was deducted the amount on the margin account and why is there a need to top it up ?
and why the increase amount in seller account could be removed by seller ?
Can you further explain on notional stock? Under bond future why say there is linkage between future and cash market?
How is the delivery of bond work by the way ?
and the party could choose which bond to deliver ? Why is this so?