You can find an example of the collateral required to open a futures position on our Bounded Futures product page


On this page you will see that the buyer and seller collateral can be calculated as:

  • Buyer: No. of Contracts * Contract Multiplier * (Trade Price - Lower Bound)

  • Seller: No. of Contracts * Contract Multiplier * (Upper Bound - Trade Price)


Contract Multiplier: You can find the contract multiplier for our Bounded Futures contracts on our Bounded Futures page.


Example:

Using a Bounded Bitcoin futures contract with a Lower boundary of 36,000, an Upper Boundary of 60,000, currently trading at $48,765. 


The amount of collateral a Buyer would need for each futures contract would be:

  • 1 * .01 * (48,765 - 36000) = $127.65


The amount of collateral a Seller would need for each futures contract would be:

  • 1 * .01 * (60,000 - 48,765) = $112.35