Re: Jim Rogers Buying the Yuan
sorry as you all know i am a complete novice, so could i please check that:
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now i know that you can at least purchase renminbi (yuan) futures from the chicago mercantile exchange. i posted the link to get them. they cost about USD 125k but only require a maintenance margin of less than 10k (couldn't get an exact quote but 50:1 would be 2500 and 20:1 would be 6k).
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say i need a minimum margin of 20:1, so i put down $6k. i then have an effective position of $125k in yuan. if that position then goes down to $119k then i need to make a margin call (?) and put more down if i want to continue with the position?
sorry just i only spreadbet where i can have a guarenteed stop loss, whereas am i right in saying that if i had $6k margin deposited but then my position dropped to $100k, i would then have to deposit another $19k?
i will likely buy 1 contract i think, i doubt i want to risk any more than $10k. any thoughts of likelyhood of it dropping 8% and bustoing my $10k?
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