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I tried on simulated account to buy 1 BRR future (multiplier = 5).

Total amount with commissions expected was 49280

Initial margin expected was +31047

Maintenance margin expected was +24837

Commissions: $15

Actual order fill price was 9855.

But the cash subtracted from my account was only $25. How is this number calculated? Does it mean I borrowed $49255 and should I pay interest rate on it? If so, which rate?

I expected Initial margin to be subtracted from my cash balance but it wasn't!

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  • I think you need to seriously revisit what a futures contact means, let alone the specific product or exchange. – base64 Jun 11 '20 at 15:25
  • Yes, I'm just trying to understand them. I expected Initial margin to be subtracted from my cash balance but it wasn't! – Vlad Jun 11 '20 at 15:26
  • If I tell you "From this moment on, if Bitcoin rose by $X, I pay you such difference by the end of each day" At this very moment, do you and I have to pay each other? – base64 Jun 11 '20 at 15:29
  • 1) Of course we don't have. But if I re-sell that promise to someone else through exchange I receive the full profit, not just the cost of promise. This is really confusing me. 2) Still, where can I see the price of future that should be payed right now? For BRR example where can I see these $25 (or $10 without fees)? – Vlad Jun 11 '20 at 15:34
  • Though you example looks more like an option, not future. – Vlad Jun 11 '20 at 15:43
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Future contract definitions I found around Internet are a bit misleading. It seems that future contracts by itself are free to buy and only affect account margins to ensure that you have enough amount if you keep it until expiration.

The provided numbers doesn't add up but in theory only exchange commissions should be payed at the moment of a Future purchase.

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