Initial margin and maintenance margin on futures contract

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Reference no: EM131924082

1. What is the difference between initial margin and maintenance margin on a futures contract?

2. One futures contract on crude oil is equal to 1,000 barrels of oil. On November 27, 2017, the futures contract for January delivery was trading at around $50.30 per barrel. The initial margin for a crude oil contract is $2,475. Approximately what is the leverage an investor enjoys by trading this commodity?

Reference no: EM131924082

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